Exploring the Concept of Homeostasis and Considering its Implications for Economics

27 Pages Posted: 22 Feb 2016

See all articles by Antonio R. Damasio

Antonio R. Damasio

University of Southern California - Department: Neuroscience Psychology

Hanna Damasio

University of Southern California - Department: Neuroscience Psychology; Salk Institute for Biological Studies

Date Written: October 2015

Abstract

In its standard format, the concept of homeostasis refers to the ability, present in all living organisms, of continuously maintaining certain functional variables within a range of values compatible with survival. The mechanisms of homeostasis were originally conceived as strictly automatic and as pertaining only to the state of an organism’s internal environment. In keeping with this concept, homeostasis was, and still is, often explained by analogy to a thermostat: upon reaching a previously set temperature, the device commands itself to either suspend the ongoing operation (cooling or heating), or to initiate it, as appropriate. This traditional explanation fails to capture the richness of the concept and the range of circumstances in which it can be applied to living systems. Our goal here is to consider a more comprehensive view of homeostasis. This includes its application to systems in which the presence of conscious and deliberative minds, individually and in social groups, permits the creation of supplementary regulatory mechanisms aimed at achieving balanced and thus survivable life states but more prone to failure than the fully automated mechanisms. We suggest that an economy is an example of one such regulatory mechanism, and that facts regarding human homeostasis may be of value in the study of economic problems. Importantly, the reality of human homeostasis expands the views on preferences and rational choice that are part of traditionally conceived Homo economicus and casts doubts on economic models that depend only on an “invisible hand” mechanism.

Keywords: Homeostasis; Economics; Consciousness

Suggested Citation

Damasio, Antonio R. and Damasio, Hanna, Exploring the Concept of Homeostasis and Considering its Implications for Economics (October 2015). Institute for New Economic Thinking Working Paper Series No. 38, Available at SSRN: https://ssrn.com/abstract=2735611 or http://dx.doi.org/10.2139/ssrn.2735611

Antonio R. Damasio (Contact Author)

University of Southern California - Department: Neuroscience Psychology ( email )

Los Angeles, CA 90089
United States
213-740-3462 (Phone)
213-821-3099 (Fax)

Hanna Damasio

University of Southern California - Department: Neuroscience Psychology ( email )

Los Angeles, CA 90089
United States

HOME PAGE: http://college.usc.edu/faculty/faculty1008329.html

Salk Institute for Biological Studies

10010 North Torrey Pines Road
La Jolla, CA 92037
United States

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