Butterfly Economics
Encyclopedia
Butterfly Economics: A New General Theory of Social and Economic Behavior is a book by Paul Ormerod
dealing with economic theory, published in 1999. The author uses a plethora of insect-related metaphors to show that an economy tends to function like a living organism and is thus able to learn and to adapt.
The theory presented by the book departs from conventional economic wisdom which understands individuals as isolated decision makers who act based on a rational evaluation of sufficient information about cost and benefits of respective choices. Butterfly economics adds interaction to the equation and argues that individuals interact when pursuing their interests, thereby gaining new information, which in turn influences their decision-making.
A web program that models ant behavior: Ant Economics Demo (requires Silverlight plugin)
Paul Ormerod
Paul Ormerod is a Lancastrian economist who is currently researching complexity, complex systems, nonlinear feedback, the boom and bust cycle of business and economic competition...
dealing with economic theory, published in 1999. The author uses a plethora of insect-related metaphors to show that an economy tends to function like a living organism and is thus able to learn and to adapt.
The theory presented by the book departs from conventional economic wisdom which understands individuals as isolated decision makers who act based on a rational evaluation of sufficient information about cost and benefits of respective choices. Butterfly economics adds interaction to the equation and argues that individuals interact when pursuing their interests, thereby gaining new information, which in turn influences their decision-making.
A web program that models ant behavior: Ant Economics Demo (requires Silverlight plugin)