Proxyeconomics, a theory and model of proxy-based competition and cultural evolution

Abstract

Competitive societal systems by necessity rely on imperfect proxy measures. For instance, profit is used to measure value to consumers, patient volumes to measure hospital performance, or the journal impact factor to measure scientific value. While there are numerous reasons why proxies will deviate from the underlying societal goals, they will nevertheless determine the selection of cultural practices and guide individual decisions. These considerations suggest that the study of proxy-based competition requires the integration of cultural evolution theory and economics or decision theory. Here, we attempt such an integration in two ways. First, we describe an agent-based simulation model, combining methods and insights from these disciplines. The model suggests that an individual intrinsic incentive can constrain a cultural evolutionary pressure, which would otherwise enforce fully proxy-oriented practices. The emergent outcome is distinct from that with either the isolated economic or evolutionary mechanism. It reflects what we termlock-in, where competitive pressure can undermine the ability of agents to pursue the shared social goal. Second, we elaborate the broader context, outlining the system-theoretic foundations as well as some philosophical and practical implications, towards a broader theory. Overall, we suggest such a theory may offer an explanatory and predictive framework for diverse subjects, ranging from scientific replicability to climate inaction, and outlining strategies for diagnosis and mitigation.