Why does economics need complexity?

Abstract The theory of complexity is gaining popularity in economics, arising from the growing awareness that traditional economics models have several limitations rooted in fixed laws and axioms. Complexity theory offers a promising alternative: it defines the economy as a complex adaptative system, characterized by the interactions of multiple agents who adapt their behavior and learn from past experiences. These interactions give rise to emergent phenomena that cannot be predicted in any way from individual behaviors, highlighting the importance of studying and understanding the system as a whole. In contrast to equilibrium economics, which assumes static states of equilibrium, complexity economics embraces non-equilibrium dynamics as fundamental to economic processes. This perspective represents both an extension and a new departure point from traditional theories, suggesting that complexity is not a refinement, but a paradigm shift in economic thinking.