Archive for the ‘Computer Model’ Category

Questions of origins play prominent roles in most sciences. Where do economies come from?

September 7, 2007

Questions of origins play prominent roles in most sciences. It would be difficult to imagine modern cosmology without the Big Bang, or biology without evolution.

“Where do economies come from?”

Traditional economic courses begin with “assume an economy.”

The process of economy formation presents us with a first-class scientific puzzle.

Joshua Epstein and Robert Axtell, researchers at the Brookings Institute, decided to conduct an experiment to see if they could grow an economy from scratch. Like biologists trying to cultivate life in vitro in a petri dish, Epstein and Axtell wanted to see if they could spark economic life in silico, in the simulated world of a computer.

They wanted to go back to the very beginning, to a state of nature, and have a model that included nothing more than people with a few basic abilities, and an environment with some natural resources. They wanted to find out the minimum conditions required to set off a chain reaction of economic activity. What would it take to get the system to start climbing the ladder of increasing economic order?

[My Comment] To make a long story short, Epstein and Axtell created a model they called Sugarscape, and the model was successful in spawning economic activity. The thing of interest to me, however, is the notion described in the preceding paragraph – get back to fundamentals, rethinking how we got to where we are now (this applies not just to economies, but to everything), and considering whether we have arrived at a desirable place.

The Origin of Wealth by Eric D. Beinhocker