Increasing Returns And Path Dependence In The Economy

Pioneering work on an important new approach to economics.

Pioneering work on an important new approach to economics.

DIVPioneering work on an important new approach to economics. /div

The Nature of Technology will change the way you think about this fundamental subject forever. W. Brian Arthur's many years of thinking and writing about technology have culminated in a unique understanding of his subject. Here he examines the nature of technology itself: what is it and how does it evolve? Giving rare insights into the evolution of specific technologies and a new framework for thinking about others, every sentence points to some further truth and fascination. At a time when we are ever more reliant on technological solutions for the world's problems, it is extraordinary how little we actually understand the processes that lead to innovation and invention. Until now. This will be a landmark book that will define its subject, and inspire people to think about technology in depth for the very first time.

The top left hand side of the keyboard reads "Q-W-E-R-T-Y." Is this inefficient layout an inefficient early development to which we are now forever committed? The "economics of QWERTY" describes cases in which it has been claimed that technologies which have become accepted are not as good as rival technologies. Perhaps they have been "locked in" at an early stage, preventing newer, better possibilities from taking hold. Distinguished economists Stan Liebowitz and Steven Margolis have critically examined the various aspects of the economics of QWERTY and its implications, calling into question the historical accuracy of the standard account of QWERTY and similar cases such as those of Beta/VHS and Macintosh/Windows. They contend that no plausible case of inferior standards being locked in has ever been documented, though much antitrust activity and legislative policy has been based on the belief in the occurrence of such cases. The Economics of Qwerty brings together into one volume Liebowitz and Margolis's essential contributions, remarkable for their eloquence and relevance, to consider these issues, which are of real and enduring importance for the functioning of the market economy. Together they constitute a complete account of the critique of the economics of QWERTY.

A new view of the economy as an evolving, complex system has been pioneered at the Santa Fe Institute over the last ten years, This volume is a collection of articles that shape and define this view?a view of the economy as emerging from the interactions of individual agents whose behavior constantly evolves, whose strategies and actions are always adapting.The traditional framework in economics portrays activity within an equilibrium steady state. The interacting agents in the economy are typically homogenous, solve well-defined problems using perfect rationality, and act within given legal and social structures. The complexity approach, by contrast, sees economic activity as continually changing?continually in process. The interacting agents are typically heterogeneous, they must cognitively interpret the problems they face, and together they create the structures?markets, legal and social institutions, price patters, expectations?to which they individually react. Such structures may never settle down. Agents may forever adapt and explore and evolve their behaviors within structures that continually emerge and change and disappear?structures these behaviors co-create. This complexity approach does not replace the equilibrium one?it complements it.The papers here collected originated at a recent conference at the Santa Fe Institute, which was called to follow up the well-known 1987 SFI conference organized by Philip Anderson, Kenneth Arrow, and David Pines. They survey the new study of complexity and the economy. They apply this approach to real economic problems and they show the extent to which the initial vision of the 1987 conference has come to fruition.

A collection of previous published papers by the author on the subject of complexity economics, appearing from the 1980s to the present.