Economic Development and Network Science

Many of the basic assumptions underlying macro-economic and financial theory are so simplistic that the models upon which they are built cannot be used to predict or explain economic events. The concept of homo economicus assumes that individuals make rational decisions based on complete knowledge motivated by their self-interest in an effort to achieve the greatest benefit at the least cost. Simplifications inherent in the representative agent approach assume away complexities associated with the interconnectedness of economic actors and the effects of their actions