Insects and Economics
Mar. 2nd, 2007 10:07 amI just finished a fascinating book called Butterfly Economics by Paul Ormerod.
The point of the book is that many economists try to treat their field like they are describing a machine which has predictable outputs based on the inputs. (Though they would probably be okay with the suggestion that it is an enormous black box that they need to know more about.) What is missing from this model, and what Ormerod discusses, is the fact that individuals can affect the behavior of other individuals.
( Book report follows )
The point of the book is that many economists try to treat their field like they are describing a machine which has predictable outputs based on the inputs. (Though they would probably be okay with the suggestion that it is an enormous black box that they need to know more about.) What is missing from this model, and what Ormerod discusses, is the fact that individuals can affect the behavior of other individuals.
( Book report follows )