Nonlinearity, Complexity and Randomness in Economics: Towards Algorithmic Foundations for Economics [Paperback]

Nonlinearity, Complexity and Randomness in Economics presents a variety of papers by leading economists, scientists, and philosophers who focus on different aspects of nonlinearity, complexity and randomness, and their implications for economics. A theme of the book is that economics should be based on algorithmic, computable mathematical foundations.

• Features an interdisciplinary collection of papers by economists, scientists, and philosophers
  
• Presents new approaches to macroeconomic modelling, agent-based modelling, financial markets, and emergent complexity
  
• Reveals how economics today must be based on algorithmic, computable mathematical foundations

Notes on Contributors vii

1. Introduction 1
Stefano Zambelli

2. Towards an Algorithmic Revolution in Economic Theory 7
K. Vela Velupillai

3. An Algorithmic Information-Theoretic Approach to the Behaviour of Financial Markets 37
Hector Zenil and Jean-Paul Delahaye

4. Complexity and Randomness in Mathematics: Philosophical Reflections on the Relevance for Economic Modelling 69
Sundar Sarukkai

5. Behavioural Complexity 85
Sami Al-Suwailem

6. Bounded Rationality and the Emergence of Simplicity Amidst Complexity 111
Cassey Lee

7. Emergent Complexity in Agent-Based Computational Economics 131
Shu-Heng Chen and Shu G.Wang

8. Non-Linear Dynamics, Complexity and Randomness: Algorithmic Foundations 151
K. Vela Velupillai

9. Stock-Flow Interactions, Disel3-