Table Of ContentEvolutionary Economics and Social Complexity Science 22
Hideaki Aoyama
Yuji Aruka
Hiroshi Yoshikawa Editors
Complexity,
Heterogeneity,
and the Methods
of Statistical Physics
in Economics
Essays in Memory of Masanao Aoki
Evolutionary Economics and Social Complexity
Science
Volume 22
Editors-in-Chief
TakahiroFujimoto,Tokyo,Japan
YujiAruka,Tokyo,Japan
TheJapaneseAssociationforEvolutionaryEconomics(JAFEE)alwayshasadhered
to its originalaim of taking an explicit“integrated” approach.This path has been
followed steadfastly since the Association’s establishment in 1997 and, as well,
since the inauguration of our international journal in 2004. We have deployed an
agendaencompassingacontemporaryarrayofsubjectsincludingbutnotlimitedto:
foundations of institutional and evolutionary economics, criticism of mainstream
viewsinthesocialsciences,knowledgeandlearninginsocio-economiclife,devel-
opmentand innovationof technologies,transformationof industrial organizations
and economic systems, experimentalstudies in economics, agent-based modeling
ofsocio-economicsystems,evolutionofthegovernancestructureoffirmsandother
organizations,comparison of dynamically changing institutions of the world, and
policy proposals in the transformational process of economic life. In short, our
starting point is an “integrative science” of evolutionary and institutional views.
Furthermore,wealwaysendeavortostayabreastofnewlyestablishedmethodssuch
asagent-basedmodeling,socio/econo-physics,andnetworkanalysisaspartofour
integrativelinks.
More fundamentally,“evolution”in socialscience is interpretedas an essential
key word, i.e., an integrative and /or communicative link to understand and
re-domainvariousprecedingdichotomiesinthesciences:ontologicalorepistemo-
logical,subjectiveorobjective,homogeneousorheterogeneous,naturalorartificial,
selfishoraltruistic,individualisticorcollective,rationalorirrational,axiomaticor
psychological-based,causalnexusorcyclicnetworked,optimaloradaptive,micro-
or macroscopic,deterministicor stochastic, historicalor theoretical,mathematical
orcomputational,experimentalor empirical,agent-basedorsocio/econo-physical,
institutional or evolutionary, regional or global, and so on. The conventional
meaningsadheringtovarioustraditionaldichotomiesmaybemoreorlessobsolete,
tobereplacedwithmorecurrentonesvis-á-viscontemporaryacademictrends.Thus
wearestronglyencouragedtointegratesomeoftheconventionaldichotomies.
These attempts are not limited to the field of economic sciences, including
management sciences, but also include social science in general. In that way,
understanding the social profiles of complex science may then be within our
reach.Inthemeantime,contemporarysocietyappearstobeevolvingintoa newly
emerging phase, chiefly characterized by an information and communication
technology (ICT) mode of production and a service network system replacing
the earlier established factory system with a new one that is suited to actual
observations. In the face of these changes we are urgently compelled to explore
a set of new properties for a new socio/economic system by implementing new
ideas. We thus are keen to look for “integratedprinciples” common to the above-
mentioned dichotomies throughoutour serial compilation of publications. We are
alsoencouragedtocreateanew,broaderspectrumforestablishingaspecificmethod
positivelyintegratedinourownoriginalway.
Editors-in-Chief
TakahiroFujimoto,Tokyo,Japan
YujiAruka,Tokyo,Japan
EditorialBoard
SatoshiSechiyama,Kyoto,Japan
YoshinoriShiozawa,Osaka,Japan
KiichiroYagi,Neyagawa,Osaka,Japan
KazuoYoshida,Kyoto,Japan
HideakiAoyama,Kyoto,Japan
HiroshiDeguchi,Yokohama,Japan
MakotoNishibe,Sapporo,Japan
TakashiHashimoto,Nomi,Japan
MasaakiYoshida,Kawasaki,Japan
TamotsuOnozaki,Tokyo,Japan
Shu-HengChen,Taipei,Taiwan
DirkHelbing,Zurich,Switzerland
Moreinformationaboutthisseriesathttp://www.springer.com/series/11930
Hideaki Aoyama (cid:129) Yuji Aruka (cid:129) Hiroshi Yoshikawa
Editors
Complexity, Heterogeneity,
and the Methods of Statistical
Physics in Economics
Essays in Memory of Masanao Aoki
Editors
HideakiAoyama YujiAruka
ResearchInstituteofEconomy,Tradeand InstituteofEconomicResearch
Industry ChuoUniversity
KyotoUniversity Hachioji-shi,Japan
Kyoto,Japan
HiroshiYoshikawa
FacultyofEconomics
RisshoUniversity
Tokyo,Japan
ISSN2198-4204 ISSN2198-4212 (electronic)
EvolutionaryEconomicsandSocialComplexityScience
ISBN978-981-15-4805-5 ISBN978-981-15-4806-2 (eBook)
https://doi.org/10.1007/978-981-15-4806-2
©SpringerNatureSingaporePteLtd.2020
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Foreword: Memories of Masanao Aoki
Masanao and I were colleagues at UCLA for many years. When he decided to
branch out from Engineering into Economics, he came to me for suggestions on
whattoread.IrememberthatoneofmysuggestionswasSamuelson’sFoundations
butMasanaofoundittrivialandnotatallhelpful.Fromthatunpromisingbeginning,
wegraduallylearnedtocooperatemorefruitfully.Hebecameavaluedcolleague.
California’sfinancialcrisisintheearly1990sledtheUniversityofCaliforniato
offerearlyretirementtofullprofessorswhometasetofcriteria.MasanaoandIwere
twooffourintheUCLAeconomicsdepartmentwhometthecriteria.Subsequently,
MasanaotookapositionattheUniversityofTokyoandItookoneattheUniversity
of Trento in Italy. In additionto my dutiesas professorof monetaryeconomics,I
beganasummerschoolprograminAdaptiveEconomicDynamics.Masanaowasan
invitedguestlectureratourthirdsummerschoolinJulyof2002.
ThismayhavebeenthelasttimeIsawMasanaoandChiekotogether.Mywife
andIinvitedthemtodinneratCastelToblino,asmallmedievalcastleonaprotected
lake.As weentered,thehostesstoldusin Italianthata youngJapanesecookwas
the sous-chef and was learning Italian cooking in the restaurant. It was a balmy
eveningandweweregivenatableonabalconyoverlookingthelake.Attheendof
thedinnertheJapanesecookcametopayhisrespects.Itwasamemorableevening
forallofus.
IwassorrytolearnofthepassingofMasanaobuthavemanygoodmemoriesof
him.
Trento,Italy AxelLeijonhufvud
vii
MasanaoAoki
(5/14/1931–7/24/2018)
Preface
ProfessorMasanaoAokimadeoutstandingcontributionstoeconomics.Thoughhis
works widely range firstly from the dual and adaptive theory of control and the
applicationsin dynamicprograming,thecontroltheoryandparametersestimation
of large-scaled and decentralized system, the applications of control theory and
systemtheory,thedevelopmentofanewalgorithmforthetimeseriesmodelandits
application,andfinallytothemostexcitingstagetoconstructanewperspectivefor
economicscienceinlinewiththeSocietyforEconomicScienceforHeterogeneous
Interacting Agents he co-founded in 2006, we would like to emphasize here
that his contribution to macroeconomics based on statistical physics was truly
pathbreaking. It provides a well-defined alternative to mainstream micro-founded
macroeconomicsbasedon representativeeconomicagents.He wasa pioneer.The
newapproachawaitsfurtherinvestigations.
As Klaus Mainzer, philosopher of science at TU Munich, who is also from
thefieldofphysics,suggested,AdolpheQuételet(1796–1874)andFrancisGalton
(1822–1911)were the most influentialfigures in promotingthe enthusiasm in the
law of large numbers and normal distributions as a universal rule in nature and
society. Galton, a British medical doctor, was well known as the first person to
measureintelligence,emphaticallystatedfromthelawoflargenumbers.Itistrivial
to see that our traditional way of thinking was much influenced by their opinions
astheuniversalmeasureatmanydifferentspheresofsocialstagesandjudgments.
At the end of the last century,however,the end of this kind of traditionalthought
began by the advent of econophysics and other related complexity studies. Due
to the last 20 years’ studies in these fields, we have witnessed the universality of
thesestudies.Toouropinion,thiscenturymustbecharacterizedbytheeraoftruly
empirical science or data science. Among these new achievements, however, the
worksofProfessorMasanaoAokimustbebyfarunique.Hehasgreatlycontributed
toformulatesystematicallythetheoreticalfoundationsfornewsciencesthroughthe
intensive worksat his final stage of life. In particular,he has smartly shown us to
replacetheoldapproachwiththeoccupancyprobleminphysics.
Inhiscontributions,wecanalwayslearntheusefulnessoftheclassicoccupancy
problem in physics when we also apply it to social science. There are two kinds
xi
xii Preface
inthisproblem:theMaxwell-BoltzmannandtheBose-Einsteinform.Thelatteris
closely related to Professor Aoki, who is mainlyinterested in the case thatagents
areexchangeableandtheirtypesarenotnecessarilyfixed.Thisformulationisquite
naturalforusifwewanttodealwithanysocialevolutionandinnovation,because
innovationwillalmostbringusnewunknownagents.Therearemanyofeconomists
whodonotknowthatthetheoryofincreasingreturnandpathdependencybyBrian
ArthurwasdrivenbytheuseofPolyaurntheory.Therearemanymoreeconomists
whodonotknowthatBrianArthurgeneralizedPolya’soriginaltheoremtoafinite
n balls in cooperation with Ukrainian mathematicians. Much more interestingly,
there are extremely fewer economists who do know that Polya’s distribution will
be potentially transformed to the Maxwell-Boltzmann distribution and the Bose-
Einsteindistribution.
On the other hand, as long as we are stationed at the two/alternative sector
models, even the use of the generalized master equation or the state transition
equation system based on new occupancy problem may not explicitly exert the
usefulnessofthenewanalyticalmethods.Untiltheadventofthesystematicworks
byProfessorAoki,wedidnotknowtherecouldbeanewinnovativewaytoanalyze
theevolutionofsociety.Unfortunately,evennowmosteconomistsarenotfamiliar
with the occupancy problem formulation at all. Economists must find a new way
by tracing the new analytical development along new distributions like Ewens
distributionwhilestartingfromthenegativebinomialdistribution.
All the contributors to this volume respect Professor Aoki’s works and try to
cultivate the new field in their own ways. We hope that more economists join the
marchandthattheyfindthepapersputtogetherinthisvolumevaluable.
Kyoto,Japan HideakiAoyama
Hachioji-shi,Japan YujiAruka
Tokyo,Japan HiroshiYoshikawa
