Equilibrium models vs. evolutionary economic models

This chapter examines the extent to which models based on evolutionary economics can provide a worthy alternative to neoclassical equilibrium models. The chapter discusses the difference between Darwinian and non-Darwinian evolutionary economic models. The chapter includes a discussion of Armen Alchian’s 1950 article that he says is erroneously identified as evolutionary economics. The works of evolutionary economists Ulrich Witt, Jack Vromen, Richard Nelson and Sidney are explained and critically examined. The chapter also considers the question of whether evolutionary economics can ever displace equilibrium economics. Some current evolutionary economic model builders have serious doubts. The chapter concludes with some speculations about going beyond the consideration of the individual firm to include sociological aspects of consumer preference.