Derived from the 2001 Santa Fe Institute Conference, "The Economy as an Evolving Complex System III," represents scholarship from the leading figures in th area of economics and complexity. The subject, a perennial centerpiece of the SFI program of studies has gained a wide range of followers for its methods of employing empirical evidence in the development of analytical economic theories. Accordingly, the chapters in this volume addresses a wide variety of issues in the fields of economics and complexity, accessing eclectic techniques from many disciplines, provided that they shed light on the economic problem. Dedicated to Kenneth Arrow on his 80th birthday, this volume honors his many contributions to the Institute. SFI-style economics is regarded as having had an important impact in introducing a new approach to economic analysis.

Derived from the 2001 Santa Fe Institute Conference, "The Economy as an Evolving Complex System III," represents scholarship from the leading figures in th area of economics and complexity. The subject, a perennial centerpiece of the SFI program of studies has gained a wide range of followers for its methods of employing empirical evidence in the development of analytical economic theories. Accordingly, the chapters in this volume addresses a wide variety of issues in the fields of economics and complexity, accessing eclectic techniques from many disciplines, provided that they shed light on the economic problem. Dedicated to Kenneth Arrow on his 80th birthday, this volume honors his many contributions to the Institute. SFI-style economics is regarded as having had an important impact in introducing a new approach to economic analysis.

Introduction Lawrence E. Blume, and Steven N. Durlauf The Epidemiology of Macroeconomic Expectations Christopher D. Carroll Social Learning and the Adoption of Innovations Charles F. Manski Rationality and Selection in Asset Markets Lawrence E. Blume, and David Easley Statistical Physics and Economic Fluctuations H. Eugene Stanley, Xavier Gabaix, Parameswaran Gopikrishnan, and Vasiliki Plerou Market Efficiency, the Pareto Wealth Distribution, and the Lévy Distribution of Stock Returns Moshe Levy A Random Order Placement Model of Price Formation in the Continuous Double Auction J. Doyne Farmer, László Gillemot, Giulia Iori, Supriya Krishnamurthy, D. Eric Smith, and Marcus G. Daniels Multinomial Choice with Social Interactions William A. Brock, and Steven N. Durlauf Heterogeneity and Uniqueness in Interaction Games Stephen Morris, and Hyun Song Shin Perspectives on the Economy as an Evolving Complex System Larry Samuelson The Diffusion of Innovations in Social Networks H. Peyton Young Dynamic Properties of Local Interaction Models Timothy G. Conley, and Giorgio Topa Useful Knowledge as an Evolving System: The View from Economic History Joel Mokyr Prosocial Emotions Samuel Bowles, and Herbert Gintis