The Microeconomics of Complex Economies uses game theory, modeling approaches, formal techniques, and computer simulations to teach useful, accessible approaches to real modern economies. It covers topics of information and innovation, including national and regional systems of innovation; clustered and networked firms; and open-source/open-innovation production and use. Its final chapter on policy perspectives and decisions confirms the value of the toolset.
Written so chapters can be used independently, the book includes an introduction to computer simulation and pedagogical supplements. Its formal, accessible treatment of complexity goes beyond the scopes of neoclassical and mainstream economics. The highly interdependent economy of the 21st century demands a reconsideration of economic theories.
- Describes the usefulness of complex heterodox economics
- Emphasizes divergences and convergences with neoclassical economic theories and perspectives
- Fits easily into courses on intermediate microeconomics, industrial organization, and games through self-contained chapters
Part I: Basics of the Interdependent Economy and Its Processes 1. Introduction to the Microeconomics of Complex Economies 2. Tools I: An Introduction to Game Theory 3. Problem Structures and Processes in Complex Economies 4. Approaching Real-World Interdependence and Complexity: Empirical Phenomena in the Global Economy
Part II: Markets: General-Equilibrium Theory and Real-World Market Structures 5. The Ideal Neoclassical Market and General Equilibrium 6. Critiques of the Neoclassical "Perfect Market Economy and Alternative Price Theories 7. Real-World Markets: Hierarchy, Size, Power, and Oligopoly, Direct Interdependence and Instability
Part III: Further Tools and the Analysis of Complex Economies 8. Tools II: More Formal Concepts of Game Theory and Evolutionary Game Theory 9. Tools III: An Introduction to Simulation and Agent-Based Modeling 10. A Universe of Economies: Interdependence and Complexity, System Trajectories, Chaos, and Self-Organization 11. Dynamics, Complexity, Evolution, and Emergence-The Roles of Game Theory and Simulation Methods
Part IV: History of Thought and Contemporary Models in Complexity Economics 12. Themes of Complexity in the History of Economic Thought: Glimpses at A. Smith, T.B. Veblen, J.A. Schumpeter, and Others 13. Recent Core Models of Complexity Microeconomics 14. The Size Dimension of Complex Economies-Towards a Meso-Economics: The Size of Interaction Arenas and the Emergence of Meso-Platforms of Institutional Coordination
Part V: Further Applications: Information, Innovation, Policy, and Methodology 15. The Information Economy and the Open-Source Principle 16. Networks and Innovation-The Networked Firm, Innovation Systems, and Varieties of Capitalism 17. Policy Implications: New Policy Perspectives for Private Agents, Networks, Network Consultants, and Public Policy Agencies 18. How to Deal with Knowledge of Complexity Microeconomics: Theories, Empirics, Applications, and Actions
Wolfram Elsner is professor of economics with the Institute for Institutional and Innovation Economics at the University Bremen in Germany. Before working in academia, he spent ten years as a local development official and state-level planner. He has published widely in various journals, has edited several books, and authored three textbooks. He is the managing editor of the Forum for Social Economics and has served as the President of the European Association for Evolutional Political Economy.