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John Holland's legacy in economics: Artificial adaptive economic agents in retrospect - from 1986 to the present

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Author Info
Shu-Heng Chen (National Chengchi University, Taiwan)
Abstract

In this paper, we will give a review on the development of artificial adaptive economic agents in evolutionary economics. The review starts from a 1986 paper by Robert Lucas, a Nobel Prize laureate in economics. From there, we shall see how the idea of economic adaptive agents was enriched and implemented by Holland's two books, Holland (1975) on genetic algorithms and Holland (1986) on classifier systems. We will then examine the impact of Holland's artificial adaptive agents on two different groups of economists. One was led by Thomas Sargent representing New Classical Economics, and the other by Brian Arthur standing for Santa Fe Institute Economics. A moot point brought here is that the spirit of the GA (John Holland's legacy) is lost in mainstream economics, but is reserved in SFI Economics. We then shift to Koza's genetic programming and show how John Holland's legacy was further expanded in evolutionary economics.

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Publisher Info
Paper provided by Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance in its series CeNDEF Workshop Papers, January 2001 with number P1.

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Date of creation: 04 Jan 2001
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Handle: RePEc:ams:cdws01:p1

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