The usual background and distinctions between complexity and neoclassical economics are presented Neoclassical economics deals with perfectly rational representative agents this creates states of equilibrium On the other hand complexity economics relaxes these assumptions to deal with responsive agents in an uncertain dynamic environment this creates states of disequilibrium More …

Complexity economics and institutional economics are complementary approaches to studying the economy. They can pool their methods and foundational theories to explain the mechanisms that underlie economies.

This text provides an easy to understand introduction to complexity economics for non-specialist audiences such as bachelor's students.