competition under resource constraints (Chen 1987). The implications of nonlinear
solutions, including the S-shaped curve and the logistic wavelet, are discussed from
the perspective of evolutionary dynamics. Section 4 introduces the cultural factor in
learning strategy when facing a new but uncertain resource or market. The division
of labor is limited by the market extent, number of resources, and environmental
fluctuations. There is a trade-off between stability and diversity. Section 5 discusses
historical puzzles in civilization bifurcation that can be explained by our approach
(Chen 2008, 2010). Section 6 addresses basic issues in economic methodology.
Section 7 concludes with a comparison between the equilibrium and evolutionary
perspectives in growth theory