search query: @author Sethi, R. / total: 5
reference: 5 / 5
« previous | next »
| Author: | Sethi, R. Franke, R. |
| Title: | Behavioral heterogenity under evolutionary pressure: macroeconomic implications of costly optimisation |
| Journal: | Economic Journal
1995 : MAY, VOL. 105:430, p. 583-600 |
| Index terms: | OPTIMIZATION ENVIRONMENT MODELS |
| Language: | eng |
| Abstract: | A model is developed in which a continuum of agents makes interdependent output decisions in a stochastic environment characterised by strategic complementarity. Two groups are distinguished: naive agents follow a costless adaptive expectations rule, while sophisticated agents incur an optimization cost to achieve self-fulfilling expectations. The paper studies the dynamics generated as the population composition evolves under pressure of differential payoffs. |
« previous | next »
SCIMA