Evolution of the economic system

Abstract

The economic system evolves as the result of its struggle against various forms of uncertainty generated exogenously by its material environment and endogenously by its institutional one. It is transformed by a process of co-evolution between its physical sphere and its psychical sphere, in which boundedly rational agents follow self-organizing mechanisms. In particular, the transmission ofinformation and the accumulation of knowledge explain the emergence of social phenomena within organizations or in the economy as a whole. institutions, for example, may be generated by dynamical processes of learning and evolution governed by agents endowed with specific heuristics and meeting in neighboring interactions.