ABSTRACT

This volume is a collection of some of the best and most influential work of Yanis Varoufakis. The chapters all address the issue of economic indeterminacy, and the place of a socialized Homo Economicus within the economy. The book addresses Varoufakis’ key interpretation regarding the way in which neoclassical economics deals with the twin problems of complexity and indeterminacy. He argues that all neoclassical modelling revolves around three meta-axioms: Methodological individualism, Methodological instrumentalism and the Methodological Imposition of Equilibrium.

Each chapter is preceded by an introduction, which explains its place within the overarching theme of the book. The volume also includes a lengthy introduction, plus a concluding chapter focusing on the future of economics. It will be a key work for all students and researchers in the field of political economy and economic methodology.

chapter 1|26 pages

Introduction: Economic indeterminacy and the dance of the meta-axioms

The dynamic mechanism by which neoclassical economics turns defeat at the hands of indeterminacy into unassailable dominance

chapter 2|42 pages

Unity is strength

It is also the cause of indeterminacy regarding the wage and employment preferences of employers and trades unions

chapter 3|33 pages

Rational conflict

On the impossibility of a determinate theory of costly disagreement

chapter 4|32 pages

No bluffing please, we are economists!

Why bluffs and other subversive acts preclude determinate game theoretical analyses

chapter 5|23 pages

Bargaining by rules of thumb

When strategic indeterminacy forces the rational negotiator to fall back on myopic rules of thumb

chapter 6|25 pages

Marxists and the sirens' song

When disgruntled Marxists reach for neoclassical economics' toolbox they get more than they bargained for

chapter 7|28 pages

A theory of solidarity

Why indeterminacy is a prerequisite for genuine solidarity

chapter 8|34 pages

On the power of what others think

How indeterminacy explodes when our preferences are influenced directly by other people's beliefs

chapter 9|18 pages

The social foundations of corruption

On the indeterminate power of what others think

chapter 10|22 pages

Evolving morals in the laboratory

The roots of distributional justice principles in indeterminacy

chapter 11|27 pages

Evolving domination in the laboratory

The spontaneous creation of hierarchies and the patterned beliefs that support them

chapter 12|23 pages

On the distinction between evolution and history

The impossibility of modelling behavioural mutations amongst political animals

chapter 13|14 pages

Conclusion

Dealing with indeterminacy on the stage of social life