Overview
Complexity economics provides a framework for understanding the unpredictable nature of economic systems through the interactions of various agents. By employing tools like agent-based modeling and studying non-linear dynamics, economists can better grasp how individual behaviors lead to emergent ma...
Key Terms
Example: Consumers and firms are agents in the market.
Example: Traffic patterns emerge from individual drivers' decisions.
Example: Small changes in consumer preferences can lead to large market shifts.
Example: Weather patterns are often chaotic.
Example: Agent-based models simulate market behavior.
Example: Changes in consumer income can affect market dynamics.
Related Topics
Key Concepts
Agent-based modelingNon-linear dynamicsEmergenceMarket behavior