Contemporary Economic Theory - Continuation or the Search for a New Paradigm?

The article aims to discuss the recent turmoil in economic theory and the way it responds to criticisms. The author argues that this response takes two parallel forms. On the one hand, advances in behavioral economics lead to a deep reconstruction of assumptions underlying the concept of 'homo oeconomicus'. On the other hand, research carried out in the loosely defined area of 'complexity economics' questions the traditional way of understanding the equilibrium and dynamics of economic systems. Due to article's size limits other interesting developments in institutional economics, political economics, as well as those related to law and sociology economics have not been addressed. The analysis leads to the conclusion that the mainstream economics significantly extends its subject matter, but at the same time strongly defends its methodology. This process suggests that in the near future one can expect its further opening to those strands in behavioral economics that apply a similar methodology. Given the entangled and transdisciplinary character of 'complexity economics', the early stage of the paradigm shift is likely to be a fairly long-lasting process. However, both developments discussed in the paper will proceed in a mutually reinforcing manner as the research program of behavioral economics constitutes a part of 'complexity economics'.