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Uncertainty, Evolution, And Economic Theory
''Uncertainty, Evolution, and Economic Theory'' is an article published in 1950 which was written by economist Armen Alchian. In this article, Alchian delineates an evolutionary approach to describe firms’ behavior. His theory embodies principles of biological evolution and natural selection. This article is among the first in the economics literature to analogize between success and survival in the market with the mechanism of variation and natural selection postulated in evolutionary biology. Alchian postulated that the survival of a few firms from a large number of firms that entered the market may be due to random entrepreneurial decisions rather than by brilliance or cunning. Success and survival rests upon the market’s response to the firms' products. Entrepreneurial decision-making cannot be tied to an explicit maximizing objective because the future is not known, and, at best, is a mishmash of probabilistic outcomes. Evolutionary approach to firm survival The evolut ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Armen Alchian
Armen Albert Alchian (; April 12, 1914February 19, 2013) was an American economist. He spent almost his entire career at the University of California, Los Angeles (UCLA). A major microeconomic theorist, he is known as one of the founders of new institutional economics and widely acknowledged for his work on property rights. Early life and education Armen Albert Alchian was born on April 12, 1914 in Fresno, California to Armenian-American parents. His father, Alexander H. Alchian (1884–1979), was born in Erzurum, Ottoman Empire and emigrated to the U.S. in 1901, while his mother Lily Normart (1889–1976) was born to Armenian immigrant parents in Fresno. Her parents were among the first Armenians to settle in the San Joaquin Valley and she was the first Armenian born in Fresno. His parents married in 1909, and Armen had a younger brother, Robert Haig Alchian (1917–1995). His father worked as a musician and a jeweler and the family was of "modest means." He grew up in the Armenia ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Natural Selection
Natural selection is the differential survival and reproduction of individuals due to differences in phenotype. It is a key mechanism of evolution, the change in the heritable traits characteristic of a population over generations. Charles Darwin popularised the term "natural selection", contrasting it with selective breeding, artificial selection, which in his view is intentional, whereas natural selection is not. Genetic diversity, Variation exists within all populations of organisms. This occurs partly because random mutations arise in the genome of an individual organism, and their offspring can inherit such mutations. Throughout the lives of the individuals, their genomes interact with their environments to cause variations in traits. The environment of a genome includes the molecular biology in the Cell (biology), cell, other cells, other individuals, populations, species, as well as the abiotic environment. Because individuals with certain variants of the trait tend ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Profit Maximization
In economics, profit maximization is the short run or long run process by which a firm may determine the price, input and output levels that will lead to the highest possible total profit (or just profit in short). In neoclassical economics, which is currently the mainstream approach to microeconomics, the firm is assumed to be a "rational agent" (whether operating in a perfectly competitive market or otherwise) which wants to maximize its total profit, which is the difference between its total revenue and its total cost. Measuring the total cost and total revenue is often impractical, as the firms do not have the necessary reliable information to determine costs at all levels of production. Instead, they take a more practical approach by examining how small changes in production influence revenues and costs. When a firm produces an extra unit of product, the additional revenue gained from selling it is called the marginal revenue (\text), and the additional cost to produce ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Utility
As a topic of economics, utility is used to model worth or value. Its usage has evolved significantly over time. The term was introduced initially as a measure of pleasure or happiness as part of the theory of utilitarianism by moral philosophers such as Jeremy Bentham and John Stuart Mill. The term has been adapted and reapplied within neoclassical economics, which dominates modern economic theory, as a utility function that represents a single consumer's preference ordering over a choice set but is not comparable across consumers. This concept of utility is personal and based on choice rather than on pleasure received, and so is specified more rigorously than the original concept but makes it less useful (and controversial) for ethical decisions. Utility function Consider a set of alternatives among which a person can make a preference ordering. The utility obtained from these alternatives is an unknown function of the utilities obtained from each alternative, not the sum of ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Stanford University
Stanford University, officially Leland Stanford Junior University, is a private research university in Stanford, California. The campus occupies , among the largest in the United States, and enrolls over 17,000 students. Stanford is considered among the most prestigious universities in the world. Stanford was founded in 1885 by Leland and Jane Stanford in memory of their only child, Leland Stanford Jr., who had died of typhoid fever at age 15 the previous year. Leland Stanford was a U.S. senator and former governor of California who made his fortune as a railroad tycoon. The school admitted its first students on October 1, 1891, as a coeducational and non-denominational institution. Stanford University struggled financially after the death of Leland Stanford in 1893 and again after much of the campus was damaged by the 1906 San Francisco earthquake. Following World War II, provost of Stanford Frederick Terman inspired and supported faculty and graduates' entrepreneu ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ronald Fisher
Sir Ronald Aylmer Fisher (17 February 1890 – 29 July 1962) was a British polymath who was active as a mathematician, statistician, biologist, geneticist, and academic. For his work in statistics, he has been described as "a genius who almost single-handedly created the foundations for modern statistical science" and "the single most important figure in 20th century statistics". In genetics, his work used mathematics to combine Mendelian genetics and natural selection; this contributed to the revival of Darwinism in the early 20th-century revision of the theory of evolution known as the modern synthesis. For his contributions to biology, Fisher has been called "the greatest of Darwin’s successors". Fisher held strong views on race and eugenics, insisting on racial differences. Although he was clearly a eugenist and advocated for the legalization of voluntary sterilization of those with heritable mental disabilities, there is some debate as to whether Fisher supported sc ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Neo-Darwinism
Neo-Darwinism is generally used to describe any integration of Charles Darwin's theory of evolution by natural selection with Gregor Mendel's theory of genetics. It mostly refers to evolutionary theory from either 1895 (for the combinations of Darwin's and August Weismann's theories of evolution) or 1942 ( "modern synthesis"), but it can mean any new Darwinian- and Mendelian-based theory, such as the current evolutionary theory. Original use Darwin's theory of evolution by natural selection, as published in 1859, provided a selection mechanism for evolution, but not a trait transfer mechanism. Lamarckism was still a very popular candidate for this. August Weismann and Alfred Russel Wallace rejected the Lamarckian idea of inheritance of acquired characteristics that Darwin had accepted and later expanded upon in his writings on heredity. The basis for the complete rejection of Lamarckism was Weismann's germ plasm theory. Weismann realised that the cells that produce the germ plasm ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Rand Corporation
The RAND Corporation (from the phrase "research and development") is an American nonprofit global policy think tank created in 1948 by Douglas Aircraft Company to offer research and analysis to the United States Armed Forces. It is financed by the Federal government of the United States, U.S. government and private Financial endowment, endowment, corporations, university, universities and private individuals. The company assists other governments, international organizations, private companies and foundations with a host of defense and non-defense issues, including healthcare. RAND aims for interdisciplinary and quantitative problem solving by translating theory, theoretical concepts from formal economics and the Outline of physical science, physical sciences into novel applications in other areas, using applied science and operations research. Overview RAND has approximately 1,850 employees. Its American locations include: Santa Monica, California (headquarters); Arlington ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Marginal Analysis
Marginalism is a theory of economics that attempts to explain the discrepancy in the value of goods and services by reference to their secondary, or marginal, utility. It states that the reason why the price of diamonds is higher than that of water, for example, owes to the greater additional satisfaction of the diamonds over the water. Thus, while the water has greater total utility, the diamond has greater marginal utility. Although the central concept of marginalism is that of marginal utility, marginalists, following the lead of Alfred Marshall, drew upon the idea of marginal physical productivity in explanation of cost. The neoclassical tradition that emerged from British marginalism abandoned the concept of utility and gave marginal rates of substitution a more fundamental role in analysis. Marginalism is an integral part of mainstream economic theory. Important marginal concepts Marginality For issues of marginality, constraints are conceptualized as a ''border'' ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Arthur S
Arthur is a common male given name of Brythonic origin. Its popularity derives from it being the name of the legendary hero King Arthur. The etymology is disputed. It may derive from the Celtic ''Artos'' meaning “Bear”. Another theory, more widely believed, is that the name is derived from the Roman clan '' Artorius'' who lived in Roman Britain for centuries. A common spelling variant used in many Slavic, Romance, and Germanic languages is Artur. In Spanish and Italian it is Arturo. Etymology The earliest datable attestation of the name Arthur is in the early 9th century Welsh-Latin text ''Historia Brittonum'', where it refers to a circa 5th to 6th-century Briton general who fought against the invading Saxons, and who later gave rise to the famous King Arthur of medieval legend and literature. A possible earlier mention of the same man is to be found in the epic Welsh poem ''Y Gododdin'' by Aneirin, which some scholars assign to the late 6th century, though this is still a ma ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Harold Demsetz
Harold Demsetz (; May 31, 1930 – January 4, 2019) was an American professor of economics at the University of California at Los Angeles (UCLA). Career Demsetz grew up on the West Side of Chicago, the grandchild of Jewish immigrants from central and eastern Europe. He studied engineering, forestry, and philosophy at four universities before being awarded a B.A. (1953) in economics from the University of Illinois, and an MBA (1954) and a Ph.D. (1959) from Northwestern University. While a graduate student, he published an article each in ''Econometrica'' and the ''Journal of Political Economy''. Demsetz taught at the University of Michigan (1958–60), UCLA, 1960–63, and the Graduate School of Business at the University of Chicago, 1963–71. In 1971, he returned permanently to UCLA's Economics Department, which he chaired 1978–80. He held the Arthur Andersen UCLA Alumni Chair in Business Economics, 1986–95. He has been affiliated with the Center for Naval Analyses and the H ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Sidney G
Sidney may refer to: People * Sidney (surname), English surname * Sidney (given name), including a list of people with the given name * Sidney (footballer, born 1972), full name Sidney da Silva Souza, Brazilian football defensive midfielder * Sidney (footballer, born 1979), full name Sidney Santos de Brito, Brazilian football defender Characters *Sidney Prescott, main character from the ''Scream'' horror trilogy * Sidney (''Ice Age''), a ground sloth in the ''Ice Age'' film series * Sidney (''Pokémon''), a character of the ''Pokémon'' universe *Sidney, one of ''The Bash Street Kids'' * Sidney Jenkins, a character in the British teenage drama '' Skins'' *Sidney Hever, Edward's fireman from ''The Railway Series'' and the TV series ''Thomas and Friends'' *Sidney, a diesel engine from the TV series ''Thomas and Friends'' *Sidney Freedman, a recurring character in the TV series ''M*A*S*H'' Places Canada *Sidney, British Columbia *Sidney, Manitoba United Kingdom * Sidney Sussex ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
