Ergodicity Economics — Niche today, new norm(al) tomorrow
In this seminar, I will discuss the research programme of Ergodicity Economics, which is derived from the study of the ergodicity problem in economics. I will show why ergodicity turns out to be a foundational issue especially in the context of decision making under uncertainty. Although the evaluation of gambles is at the basis of formal economics, the community is mostly unfamiliar with the concept of ergodicity. This leaves ample opportunities for young researchers to contribute. The main novelty associated with Ergodicity Economics consists in the embedding of economic processes within historical time, from which temporal maximisation follows as a different rationality criterion. For a decade now, tackling the ergodicity problem in economics continues to produce a stream of interesting results. I will briefly highlight some theoretical and experimental results and conclude with current open research questions.