1999/11/01 by J. Barkley Rosser · 1 citation
Economics, Econometrics and Finance · Social Sciences · Mathematics · #Complex Systems and Time Series Analysis #Economic theories and models #Evolutionary Game Theory and Cooperation #Bounded rationality #Computer science #Complex system #Complex dynamics #Chaotic #Evolutionary game theory #Limit cycle #Nonlinear system #Predictability #Complex adaptive system #Novelty #Mathematical economics #Game theory #Economics #Mathematics #Artificial intelligence #Physics
paper · pdf · doi:10.1257/jep.13.4.169
openalex publication_date 1999/11/01 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/27
Complex economic nonlinear dynamics endogenously do not converge to a point, a limit cycle, or an explosion. Their study developed out of earlier studies of cybernetic, catastrophic, and chaotic systems. Complexity analysis stresses interactions among dispersed agents without a global controller, tangled hierarchies, adaptive learning, evolution, and novelty, and out-of-equilibrium dynamics. Complexity methods include interacting particle systems, self-organized criticality, and evolutionary game theory, to simulate artificial stock markets and other phenomena. Theoretically, bounded rationality replaces rational expectations. Complexity theory influences empirical methods and restructures policy debates.