Description
Complex Economics: Individual and Collective Rationality challenges conventional economic theory by examining the disconnect between individual rational behavior and collective economic outcomes. Alan Kirman argues that traditional models based on representative agents and perfect rationality fail to capture the complexity of real economic systems.
Through accessible analysis, Kirman demonstrates how individual decisions, while seemingly rational in isolation, can produce irrational or inefficient results at the aggregate level. He explores emergent properties of economic systems, network effects, and behavioral patterns that defy standard economic predictions. The book draws on complexity theory, behavioral economics, and empirical evidence to show how markets function as complex adaptive systems rather than equilibrium-seeking mechanisms.
Essential reading for economists, policymakers, and anyone seeking to understand why markets behave unpredictably and how individual choices cascade into systemic outcomes.
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