Entrepreneurship, Evolution and the Human Mind
AbstractSchumpeterian 'development from within' requires imagination, skill and motivation; so does Cattaneo's 'psychology of wealth'. Neither can be encompassed by models that rely on deductive rationality, but are twin products of Knightian uncertainty, where the absence of demonstrably correct procedures allows individuals to create domain-limited mental structures. The human mind (as studied by Smith, Marshall and Hayek), is a product of biological evolution which supports the evolution of knowledge and of economic systems. These are non-biological processes; both require (fallible) bounds to uncertainty, which are provided by (evolving) formal and informal organisation, including institutions.
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Bibliographic InfoPaper provided by Max Planck Institute of Economics, Evolutionary Economics Group in its series Papers on Economics and Evolution with number 2005-13.
Length: 20 pages
Date of creation: Sep 2005
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-10-29 (All new papers)
- NEP-CBE-2005-10-29 (Cognitive & Behavioural Economics)
- NEP-ENT-2005-10-29 (Entrepreneurship)
- NEP-EVO-2005-10-29 (Evolutionary Economics)
- NEP-HPE-2005-10-29 (History & Philosophy of Economics)
- NEP-INO-2005-10-29 (Innovation)
- NEP-PKE-2005-10-29 (Post Keynesian Economics)
- NEP-TID-2005-10-29 (Technology & Industrial Dynamics)
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