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Yoshinori Shiozawa – Microfoundations Of Evolutionary Economics

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Yoshinori Shiozawa – Microfoundations Of Evolutionary Economics

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Yoshinori Shiozawa – Microfoundations Of Evolutionary Economics

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This book provides for the first time the microfoundations of evolutionary economics.

It enables the reader to grasp a new framework for economic analysis that is compatible with evolutionary processes.

Any independent economics must contain a value theory (or price theory) and price and quantity adjustment processes.

Evolutionary economics rightly and successfully concentrated its efforts on explaining evolutionary processes in technology and institutions.

However, it did not have its own value theory and could not explain the workings of everyday economics processes, in which any evolutionary processes would take place.

Our point of departure is myopic agents with strongly limited rationality and forecasting capacities (in extreme contrast to mainstream economics). We show how myopic agents, in a complex world, can produce a stable price system and observe how they can adjust their productions to the changes of demand flows. Agents behave without knowledge of the total process and they generate a stable economy as large as the global network of exchanges.

This is a true wonder of the market mechanism.

In contrast to mainstream general equilibrium theory, this wonder is finely explained without the help of an auctioneer or the concepts of demand and supply functions. With this book, evolutionary economics can claim to be an independent economics that can totally replace mainstream neoclassical economics.


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