"Rational Models of Sapience"

"Think how hard physics would be if particles could think."-- Nobel Prize winning Particle Physicist, Murray Gell-Mann 

All economics models make explicit or implicit assumptions about human behavior. Depending on the model, the assumptions involved could range from reasonable to absurd. Nevertheless such assumptions are often necessary for analytical tractability. The persistent use of a standard set of simplifying assumptions by economists led to the facetious creation of a widely-known species that exists only in models: Homo Economicus.  While it may have indeed been rational to model economic actors as the caricatured Homo Economics several decades ago, advances in math and computing power have enabled economists to gradually revise those assumptions to make them more realistic in terms of capturing actual human behavior. In this talk we will explore how simulation modeling has allowed Homo Economicus to gradually evolve into a creature more closely resembling Homo Sapiens.

About the speaker: Prof. Shyam Gouri Suresh, Associate Professor of Economics