Adapting, Learning, Economizing and Economic Evolution

Abstract

This paper outlines the basic concepts of adaptation, learning, and evolution and their relationship to equilibrium and disequilibrium in economic processes. Work using these concepts in the behavioral tradition of Cyert, March and Simon is summarized. A more detailed description of economic experimentation or trial and error search is presented. This is followed by brief comments on recent developments and reflections on the implications of learning for micro and macroeconomic theory. The paper concludes with a personal tribute to Richard Cyert.

Keywords: Adaptive Economics, Learning, Economic Behavior, Economic Theory

JEL Classification: D0