DEFINITION of 'Evolutionary Economics '
A term coined by Thorstein Veblen (1857-1929), an American economist and sociologist. Veblen's evolutionary economics drew upon anthropology, sociology, psychology and Darwinian principles. Evolutionary economists believe that economic organization is a dynamic process involving ongoing transformation, and that economic behavior is determined by both individuals and society as a whole.
BREAKING DOWN 'Evolutionary Economics '
Evolutionary economics seeks to explain economic behavior and progress in relation to evolution and evolutionary human instincts such as predation, emulation and curiosity. Evolutionary economics explores how human behavior, such as our sense of fairness and justice, extends to economics.