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Diversity and mechanisms of economic evolution

Author

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  • Agnieszka Lipieta

    (Cracow University of Economics)

  • Elżbieta Pliś

    (Cracow University of Economics)

Abstract

In the paper, we examine the relationship between the diversity of a competitive economy and the mechanisms that appear within economic development. We use the concept of transformation of the economic system to analyze innovation in the economy. A properly defined diversity function allows us to measure the diversity of the production system of a given economy as well as to relate the obtained value to certain properties of the mechanisms of economic evolution defined in the Hurwicz conceptual apparatus. We show that innovative mechanisms and eco-mechanisms can increase the diversity of the analyzed economic system. The conclusions are the results of mathematical theorems.

Suggested Citation

  • Agnieszka Lipieta & Elżbieta Pliś, 2022. "Diversity and mechanisms of economic evolution," Journal of Evolutionary Economics, Springer, vol. 32(4), pages 1265-1286, September.
    • Handle: RePEc:spr:joevec:v:32:y:2022:i:4:d:10.1007_s00191-022-00773-8
    DOI: 10.1007/s00191-022-00773-8
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    More about this item

    Keywords

    Economic evolution; Diversity; Mechanisms;
    All these keywords.

    JEL classification:

    • C02 - Mathematical and Quantitative Methods - - General - - - Mathematical Economics
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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