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This book contains the most sustained and serious attack on mainstream, neoclassical economics in more than forty years. Richard R. Nelson and Sidney G. Winter focus their critique on the basic question of how firms and industries change overtime. They marshal significant objections to the fundamental neoclassical assumptions of profit maximization and market equilibrium, which they find ineffective in the analysis of technological innovation and the dynamics of competition among firms. To replace these assumptions, they borrow from biology the concept of natural selection to construct a precise and detailed evolutionary theory of business behavior. They grant that films are motivated by profit and engage in search for ways of improving profits, but they do not consider them to be profit maximizing. Likewise, they emphasize the tendency for the more profitable firms to drive the less profitable ones out of business, but they do not focus their analysis on hypothetical states of industry equilibrium. The results of their new paradigm and analytical framework are impressive. Not only have they been able to develop more coherent and powerful models of competitive firm dynamics under conditions of growth and technological change, but their approach is compatible with findings in psychology and other social sciences. Finally, their work has important implications for welfare economics and for government policy toward industry.
In retrospect the 19th century tmdoubtedly seems to be the century of evolutionism. The 'discovery of time' and therewith the experience of variability was made by many sciences: not only historians worked on the elaboration and interpretation of this discovery, but also physicists, geographers, biologists and economists, demographers, archaelogists, and even philosophers. The successful empirical fotmdation of evolutive processes by Darwin and his disciples suggested Herbert Spencer's vigorously pursued efforts in searching for an extensive' catalogue of prime and deduced evolutionary principles that would allow to integrate the most different disciplines of natural and social sciences as well as the efforts of philosophers of ethics and epistemologists. Soon it became evident, however, that the claim for integration anticipated by far the actual results of these different disciplines. Darwin I s theory suffered from the fact that in the beginning a hereditary factor which could have his theory could not be detected, while the gainings of grotmd supported in the social sciences got lost in consequence of the completely ahistorical or biologistic speculations of some representatives of the evolutionary research programm and common socialdarwinistic misinterpretations.
This book examines the generally unrecognized role played by the Carnegie, Ford, and Rockefeller foundations in support of United States foreign policy, particularly since 1945. The foundations' efforts on behalf of American interests abroad have focused primarily on their support for a number of institutions of higher education in strategically located Third World nations. These institutions, modeled after foundation-supported American universities, were designed to train Third World leaders in norms that would encourage them—minimally—to assume a posture of neutrality toward American economic and political penetration of their societies. Dr. Berman's study challenges the oft-asserted, but undocumented, thesis of the American political right that these liberal foundations historically have pursued policies detrimental to United States interests. The evidence indicates how foundation policies and programs were formulated after close consultation with leaders of the American corporate sector and government officials, and how their activities were designed to further the objectives determined by those who influence the direction of United States foreign policy.
Evolutionary Social Theory and Political Economy traces the origins, extension, marginalization and revival of evolutionary approaches to social theory from the Enlightenment through the beginning of the 21st century. It demonstrates how changes in understandings of social evolution corresponded to changes in definitions of Political Economy and how both reflected changes in the Philosophy of Science. This book is written for students and researchers alike in all the social sciences. Economists will benefit from understanding how ideas about evolution in Economics corresponded to ideas about evolution in other social sciences, and Social Scientists outside of Economics will benefit from understanding how Economics has related to their discipline.