What was the nature of their innovation and how did it contribute to humankind? The foundations of traditional neoclassical economics were laid at a time when understanding of randomness was in its infancy. Economists in the 18th century used the concept of utility to explain people's choices when making decisions under randomness. This foundation - expected utility theory - has remained the same until the present day. But there is a problem, which very briefly is that time does not feature in that framework. In the standard theory it is assumed that the average over time is the same as the average over possible states i.e. the economy is ergodic). Whereas in reality the irreversible passage of time has a big influence on human decisions. Peters and Adamou are rewriting economics to incorporate a correct treatment of time, and explanation of human decision-making.
It turns out that the early economists went down the wrong path 3 centuries ago when they assumed that human decision-making is based on maximising expected utility. Ole Peters and Alex Adamou have uncovered this astonishing story and have been developing alternative economic theory which puts time back into the models. This explains many economic phenomena, such as rising inequality of wealth. More details here: http://lml.org.uk/research/economics/ and here https://ergodicityeconomics.com/.
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