We propose a theory of asset pricing based on heterogeneous agents who continually adapt their expectations to the market that these expectations aggregatively create. And we explore the implications of this theory computationally using our Santa Fe artificial stock market. <p> Asset markets, we...</p>

This paper reports the results of a research project addressing the current state of e-procurement technologies. The results indicate that the final equilibrium may include several technologies, each one serving a different segment of the market. This multiplicity of solutions is likely to...

Over the last twenty or more years a different way of doing economics has been slowly emerging. It goes by several names: complexity economics, agent-based computational modeling, generative economics, Santa Fe economics, and each of these has its own style, its own followers, and its own...

Complexity research draws on complexity in various disciplines. This Handbook provides a comprehensive and current overview of applications of complexity theory in economics. The 15 chapters, written by leading figures in the field, cover such broad topic areas as conceptual issues,...

The standard mode of theorizing assumed in economics deductive--it assumes that human agents derive their conclusions by logical processes from complete, consistent and well-defined premises in a given problem. This works well in simple problems, but it breaks down beyond a "problem complexity...

It is often taken for granted that as systems evolve over time they tend to become more complex. But little is understood about the mechanisms that might cause evolution to favor increases in complexity over time. This paper proposes three means by which complexity tends to grow as systems...

This paper draws on modern psychology to argue that as humans, in economic decision contexts that are complicated or ill-defined, we use not deductive, but inductive reasoning. That is, in such contexts we induce a variety of working hypotheses or mental models, act upon the most credible, and...