Butterfly Economics

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Butterfly Economics: A New General Theory of Social and Economic Behavior
Author Paul Ormerod
Country United Kingdom
Language English
Subject Economics
Publisher Faber and Faber Limited
Publication date
1998
Pages 217
ISBN ISBN 0-571-19005-7
OCLC 40624765
330.1 Economics

Butterfly Economics: A New General Theory of Social and Economic Behavior is a book by Paul Ormerod dealing with economic theory, published in 1999. The author uses a plethora of insect-related metaphors to show that an economy tends to function like a living organism and is thus able to learn and to adapt.

The theory presented by the book departs from conventional economic wisdom which understands individuals as isolated decision makers who act based on a rational evaluation of sufficient information about cost and benefits of respective choices. Butterfly economics adds interaction to the equation and argues that individuals interact when pursuing their interests, thereby gaining new information, which in turn influences their decision-making.

A web program that models ant behavior: Ant Economics Demo (requires Silverlight plugin)