Economic cosmology and the evolutionary challenge

• Published in: Journal of economic behavior & organization Vol. 90; pp. S11 - S20
• Main Authors: Gowdy, John M., Dollimore, Denise E., Wilson, David Sloan, Witt, Ulrich
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01-06-2013; Elsevier Sequoia S.A
• Subjects: Competition and cooperation; Economic man; Economics; Evolutionary biology; Evolutionary economics; History of economic thought; Multilevel selection; Spontaneous order; Studies; B11; B12; Economic man; Multilevel selection; B15; D02; History of economic thought; Competition and cooperation; Spontaneous order; Evolutionary economics; B40; B52; D60
• ISSN: 0167-2681; 1879-1751
• DOI: 10.1016/j.jebo.2012.12.009

The intellectual histories of economics and evolutionary biology are closely intertwined because both subjects deal with living, complex, evolving systems. Because the subject matter is similar, contemporary evolutionary thought has much to offer to economics. In recent decades theoretical biology has progressed faster than economics in understanding phenomena like hierarchical processes, cooperative behavior, and selection processes in evolutionary change. This paper discusses three very old “cosmologies” in Western thought, how these play out in economic theory, and how evolutionary biology can help evaluate their validity and policy relevance. These cosmologies are: (1) “natural man” as a rational, self-sufficient, egotistical individual, (2) competition among individuals can lead to a well-functioning society, and (3) there exists an ideal optimal state of nature. These correspond to Colander et al. (2004) “holy trinity of orthodox economics”, rationality, greed, and equilibrium. It is argued below that current breakthroughs in evolutionary biology and neuroscience can help economics go beyond these simple cosmologies.