Evolutionary economics, network economics, and non-equilibrium dynamics
Oxford University • 2025
Eric Beinhocker, the author of The Origin of Wealth, argues that complexity economics is not merely an alternative and advantageous set of methods for understanding the economy but could play a critical role in the construction of a new economic paradigm. Complexity economics is part of a broader interlocking set of ideas—an “ontological stack”—that has the potential to supplant the dominant economic paradigms of the twentieth century.
Materials:
INET - Oxford University • 2025
Doyne Farmer explains what ABMs are and how they are built in more detail. Then, he reviews four examples of models for leverage cycles, the 2008 housing bubble, Covid, and a general-purpose micro-macro model. Finally, he concludes by discussing the advantages and disadvantages of agent-based models in comparison to standard models.
Princton University • 2003
In his extraordinary book, Didier Sornette uses concepts from complexity science to explain the dynamics of stock market crashes. In particular, drawing on Ising model and network theory, he models how herding behavior among investors can lead to speculative bubbles and subsequent crashes.
