Emergence and Embodiment in Economic Modeling.

Abstract

Exploratory ventures outside the established disciplinary boundaries can yield added insights and explanatory power. Imposing cognitive limitations on human logical reasoning ability (bounded rationality) is a well-known case in point. Extending cognition to parts of body outside the brain, and to environment outside the body is another. In contrast, the present article takes a constructive approach, also in an exploratory spirit. For the sake of exposition, we consider three tiered realms of scientific inquiry: physical or inanimate, biological or animate, and socio-psychological or sentient. In this three-tier framework, we explore the extent of gains in modeling human action within the confines of physical principles such as optimization. In this exercise, concepts of complexity and emergence account for the absence of analytically derivable mapping from micro or finer grain phenomena to macro or coarser grain phenomena. A general notion of embodiment captures the inclusion of a more expansive range of explanatory factors in modeling and understanding a given phenomenon. Emergence and embodiment play complementary roles in exploration of human behavior.