Economics from a biological perspective: the role of sociocultural homeostasis

Economics and biology have long been overlapping and mutually enriching fields. We contribute to this cross-fertilization by spelling out the implications for economic theory of some recent insights from evolutionary neurobiology. We note that dynamic homeostasis, a core feature of life processes, has shaped social interactions at varied stages of evolution – from the patterns of competition and cooperation among early life forms to the complex process of human cultures. The resulting homeostatic perspective is not compatible with several leading economic theories but does provide a biological footing for promising concepts such as ecological rationality, heuristics, heterogeneity of economic agents, and complex, self-organizing dynamics.