Behavioral economics focuses mainly on how limitations of the human cognitive apparatus, risk attitudes, and human sociality affect decision making. The former two lead to deviations from rationality standards, the latter to deviations from rational self-interest. Some of these research interests are also shared by evolutionary psychology which, however, explains the observed deviations by features of the human genetic endowment conjectured to have evolved under fierce selection pressure in early human phylogeny. Important as the decision-making theoretical perspective of the two (...) disciplines is, it will be claimed to be too narrow to fully account for what an evolutionary approach has to say about economic behavior. This is particularly true regarding the questions of what choices are made and what causes them, i.e., the motivational aspects of behavior. In the language of economics this points to the agents’ preferences. This article discusses how preferences relate to the human genetic endowment, how they can change over time, and what conclusions have to be drawn from extending the analysis to the motivational side. (shrink)

This article discusses the challenges raised by the inclusion of evolutionary elements in the theories of Carl Menger, Joseph Schumpeter, and Friedrich Hayek. Each adopted an idiosyncratic position in terms of method of inquiry, focus, and general message. The breadth of the topics and phenomena they cover testifies to the great variety of interpretations and potential uses of evolutionary concepts in economics. Menger, who made no reference to Darwin’s theory, advanced an “organic” view of the emergence of social institutions. Schumpeter (...) elaborated an original theory of industrial development based on the recurrent emergence and dissemination of innovations. Hayek adopted the biological notion of group selection and made it the central element in his theory of cultural evolution and the rise of the free market. The chapter concludes with a preliminary evaluation of the possible role that evolutionary theorizing might play in the future development of Austrian economics. (shrink)

Because of the intellectual attraction of the neo-Darwinian theory of evolution, its conccpts are often borrowed to conceptualized evolutionary change also in non-biological domains. However, a heuristic strategy like that is problematic. An attempt is therefore made to identify generic features of evolution which transcend domain-specific characteristics. Epistemological, conccptual, and methodological implications are discussed, and the ontological question is raised how non-biological evolutionary theories can be accommodated within the Darwinian world view of modern sciences.

Given that individual information processing and memory capacity are severely limited, many institutional and procedural properties of the social communication process can be explained within an individualistic approach as the outcome of a co-evolution of action-inherent knowledge and preferences. This argument is outlined by referring to phenomena such as the competitive release of information (advertising), the role of celebrities and the rent they collect, and some characteristic ‘critical mass’ features.