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Ergodic Axiom: The Ontological Mistakes in Economics

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  • Andrášik Ladislav

    () (European Polytechnic Institute, Kunovice, Czech Republic, Osvobození 699, 686 04 Kunovice)

Abstract

There are several ontological and consequently also methodological mistakes in contemporary mainstream economics. Among them, the so-called ergodic axiom is play significant role. It is understandable that the real economy elaborated as formalized mental model looks like dynamic system on first sight. However, that is right only of dynamical systems in mathematical formalism. Economy that is in our understanding societal and/or collective economy is complex evolving organism. If we imagine such organism in the form of dynamical system that is as clear mathematical formalism, we are losing their crucial authentic character. The significant irredeemable attribute of societal economy is lying in his complex evolving network process character created by large population of people with different decision-making and complex realizing among them. Going from these imaginations the two entities in a question that is dynamical system with their ergodicity and societal economic organism as complex evolving network are qualitative very different ones. That is the reason why we cannot accede with endeavours to draw on living economy straitjacket of ergodic axiom. To articulate that cause by other words ergodic dynamical systems are applicable for physical and partly for chemical entities and only scarcely are fit for living organisms. On the other hand however, as clear method the ergodic dynamical system have good applying for didactical approaches in economics where helping in better understanding some types of complexities in dynamics. The purpose of that essay is to discuss problems around usability of ergodic dynamical system theory and methods in economics in the age of advanced ICT knowledge based society.

Suggested Citation

  • Andrášik Ladislav, 2015. "Ergodic Axiom: The Ontological Mistakes in Economics," Creative and Knowledge Society, Sciendo, vol. 5(1), pages 47-65, July.
  • Handle: RePEc:vrs:crknos:v:5:y:2015:i:1:p:47-65:n:5
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    3. Sushko, Iryna & Gardini, Laura & Puu, Tönu, 2010. "Regular and chaotic growth in a Hicksian floor/ceiling model," Journal of Economic Behavior & Organization, Elsevier, vol. 75(1), pages 77-94, July.
    4. Frank Westerhoff, 2006. "Samuelson's multiplier-accelerator model revisited," Applied Economics Letters, Taylor & Francis Journals, vol. 13(2), pages 89-92.
    5. Zeeman, E. C., 1974. "On the unstable behaviour of stock exchanges," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 39-49, March.
    6. Ulrich Witt, 2006. "Evolutionary concepts in economics and biology," Journal of Evolutionary Economics, Springer, vol. 16(5), pages 473-476, December.
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