The present work examines the evolutionary theories set forth by Armen Alchian in his 1950 paper, Uncertainty, Evolution and Economic Theory; and furthered by Geoffrey Manne and Todd Zywicki in their recent paper titled Uncertainty, Evolution, and Behavioral Economic Theory. Alchian's thesis relied on an evolutionary understanding of firms' activities in the context of uncertain settings, analyzing it through the lenses of 'evolution' and 'natural selection' in order to contend that for firms to 'survive' in the market, they would need to act 'as if' they are oriented towards profit maximization, regardless of whether or not they actually are. There are three underlying propositions in the present study: (i) Material rational behavior may not be automatically discarded in an environment where 'uncertainty' and 'asymmetry of information' are constant factors. (ii) Allocative efficiency may be influenced by a flux of environmental, individual and behavioral inputs, which are expressed in the prioritization sets that economic actors establish in order to formulate their utility functions. (iii) Manne & Zywicki's posture against the inclusion of volitive elements in Antitrust Enforcement is essentially wrong, as proven by analyzing the role of 'procompetitive justifications' in the enforcement of Antitrust rules. In sum, the present work concludes that Alchian's evolutionary theory does not account for the interpretation that economic actors render to the inputs generated in their respective market environments. Even as empirical models may render useful biases that positively inform the conduct of economic actors, the use of conventional analytical tools in a world of uncertainty and incomplete information does not account for a consistent formulation of useful predictions in ever-changing market environments.

Understanding the behaviour of individuals and firms is at the heart of evolutionary economics, and also of related fields such as behavioural economics, management, and psychology. This book brings together a set of cutting-edge theoretical and empirical contributions addressing individual agents and their interaction, the evolution of firm organization, as well as the interplay of firm dynamics and regional development.

This sixth volume of The Foundations of Behavioral Economic Analysis covers behavioral models of learning. It is an essential guide for advanced undergraduate and postgraduate students seeking a concise and focused text on this important subject, and examines evolutionary game theory, models of learning, and stochastic social dynamics. This updated extract from Dhami's leading textbook allows the reader to pursue subsections of this vast and rapidly growing field and to tailor their reading to their specific interests in behavioral economics.

Utilizing extensive research in economics, psychology, political science, neuroscience and evolutionary theory, Ananish Chaudhuri provides a critical perspective on the role of cognitive biases in decision-making during the Covid-19 pandemic. The extensive use of, and support for, stringent social distancing measures in particular is explored in depth.

In this book, David K. Levine questions the idea that behavioral economics is the answer to economic problems. He explores the successes and failures of contemporary economics both inside and outside the laboratory, and asks whether popular behavioral theories of psychological biases are solutions to the failures. The book not only provides an overview of popular behavioral theories and their history, but also gives the reader the tools for scrutinizing them.