Biology

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April 10, 2026

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April 10, 2026

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"Hayek was influenced by the biological metaphor of evolution (in contrast to Walras, who was inspired by notions in physics of “equilibrium”). Darwin had talked about the survival of the fittest, and Social Darwinism similarly contended that ruthless competition with the survival of the fittest firms would imply ever-increasing efficiency of the economy. Hayek simply took this as an article of faith, but the fact of the matter is that unguided evolutionary processes may, or may not, lead to economic efficiency. Unfortunately, natural selection does not necessarily choose the firms (or institutions) that are best for the long run. One of the main criticisms of financial markets is that they have become increasingly shortsighted. Some of the institutional changes (such as investors’ focus on quarterly returns) have made it more difficult for firms to take longer-run perspectives. In this crisis, some firms complained that they didn’t want to take on as much leverage as they did—they realized the risk—but if they hadn’t, they wouldn’t have survived. Their return on equity would have been low, market participants would have misinterpreted the low return as a result of lack of innovativeness and enterprise, and their stock price would have been beaten down. They felt that they had no choice but to follow the herd—with disastrous effects over the long run, both to their shareholders and to the economy."

- Friedrich Hayek and evolution

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"Much of our fascination with the data of evo-devo arises from the sheer novelty of discovery in biological domains that had been previously and totally inaccessible. These empirical gems also illustrate, even in these early days, the integrating power of scientific conclusions to translate a previous descriptive chaos into explanatory sensibility. As an example, consider the name given to the truly elegant theory of floral genesis, as developed by students of Arabidopsis, the "Drosophila" of angiosperm biology—the ABC Model (Coen and Meyerowitz, 1991; Weigel and Meyerowitz, 1994; Jurgens, 1997; Busch, Bomblies, and Weigel, 1999; Wagner, Sablowski, and Meyerowitz, 1999). In this elegantly simple model (see Fig. 10-12), based on genes with homeotic effects upon serially repeated structures arranged in systematic order (with repetition in concentric whorls rather than linearly along a body axis), A genes operating alone determine the form of the outermost whorl of leaf-like sepals; A plus B genes regulate petals in the next whorl within; B plus C genes mark the male stamens, while C genes working alone determine the most interior female carpels. Moreover, leafy, a "higher control" gene previously recognized as an initiator or suppressor of floral growth and placement in general (Weigel and Nilsson, 1995), apparently also regulates the more specific operation of the ABC series. (Busch et al., 1999, demonstrate that a protein produced by leafy bonds directly to a particular DNA segment of a C gene responsible for the generation of carpels.)"

- ABC model of flower development

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