The End of Conventional Economics — Redefinition through Relational Existence and Nonlinear Economic Models

This paper critiques conventional economics—from classical and neoclassical schools to Keynesian and Marxian frameworks—by highlighting the collapse of their core assumptions such as stable growth models and rational agents under the pressure of technological innovation, environmental constraints, and structural social change. It proposes a structural transformation of economics grounded in a new philosophical approach, particularly the framework of Relational Existence. Conventional models such as the neoclassical utility maximization framework assume complete information and market equilibrium, but fail to capture modern uncertainty and nonlinear fluctuations. To address this, the utility function is extended to depend on the state of relational networks evolving over time, introducing nonlinear dynamics and network effects into economic modeling. The paper concludes that conventional economics, centered on the flow of goods, is reaching its theoretical limits. The future of economics must place the flow of relations at its core, offering a new economic philosophy capable of explaining nonlinear, dynamic economic phenomena.