Complex Economic Systems

The economic and financial crises and specially the one of 2008-2009 revealed that traditional economic and financial theories, based upon the flawed assumption that humans always behave rationally and predictably, was inadequate to deal with the complexity and uncertainty that are inherent in economic and financial systems. MCTech seeks to contribute to the development of a new economic perspective to explain phenomena characterized by self-organization and complexity, such as, size of firms, population of cities, artists’ earnings, income, and many other economic and social phenomena following Zipf’s law and other power law distributions. So far, there is not a generally accepted theory that explains these phenomena. At MCTech researchers, applying complexity theory, increasing returns economics, the tools of systems dynamics and Polya Processes, are suggesting an alternative theoretical approach to address polarization in the economy, cities, and financial markets.

Research projects:

1. Concentration of income distribution: An explanation.
2. Forms of capitalism to eradicate poverty.
3. Cities, firms, financial markets and wealth.
4. Increasing returns microeconomics.
5. Strategy in high technology industries.
6. Creation, adoption and competition of technologies.

Project participants:

Fernando Buendía.
Josué Reynoso Vallejo.

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