Computative Economics A Framework for Economic Analysis under Computational Abundance
Wulf A. Kaal · 2026
This paper develops Computative Economics as a framework for economic analysis where the binding constraint on production is computational rather than physical. The framework generalizes Arrow-Debreu equilibrium existence to economies with endogenous possibility spaces. Homo economicus is replaced by the computative agent, a tuple (C, O, M, G, R); the scarce good by the generated possibility space; competitive equilibrium by recursive equilibrium, formalized as the fixed point of a composite best-response map. Existence is proved via Brouwer under convexity and continuity; uniqueness and convergent iteration via Banach under contraction. Four propositions are derived from fourteen stated assumptions, and Ostrom's design principles for commons governance are translated to the computational domain. The framework is positioned as a companion paradigm to Neoclassical Economics, applicable where the computational primitive holds. Keywords: computative agent; generated possibility space; recursive equilibrium; Brouwer fixed-point theorem; Banach fixed-point theorem; commons governance; computational abundance; objective function governance JEL Classification: B41, C62, D50, D83, O33, P16 1 University of St. Thomas School of Law; [email protected]; ORCID 0000-0003-0757-275X. The author thanks an earlier working draft circle for comments on prior versions. In accordance with the American Economic Association's Disclosure Policy on the use of generative artificial intelligence tools, the author discloses that drafting assistance was provided by large language model systems in the preparation of this manuscript. The author is solely accountable for all content, including the correctness of formal results and the accuracy of cited literature, and has verified all sources independently. The author has no financial conflicts of interest to disclose with respect to the subject matter of this paper. 1 Kaal | Computative Economics I. Introduction This paper generalizes the exis
Cite: Wulf A. Kaal, Computative Economics A Framework for Economic Analysis under Computational Abundance (2026). SSRN: https://ssrn.com/abstract=6607458
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