Nonlinearity, Bounded Rationality, and Heterogeneity: Some Aspects of Market Economies as Complex Systems

ISBN-13: 9784431549703 / Angielski / Twarda / 2018 / 220 str.

Tamotsu Onozaki

Opis

This book follows a nonlinear approach in considering both chaotic dynamical models and agent-based simulation models of economics as well as their dynamical behaviors. Three key words arising in this context are nonlinearity, bounded rationality and heterogeneity, which make up the title of the book. Nonlinearity is the warp that runs throughout all models because systems that exhibit chaotic or other complex behavior in the absence of any exogenous disturbances are absolutely nonlinear. Bounded rationality constitutes the woof because economic systems do not exhibit complex behavior if all agents are perfectly rational as is usually assumed in neoclassical economics. Agents who are boundedly rational have to struggle to do their best under informational restriction and tend to adapt themselves to the economic environment without knowing what is the best. Furthermore, heterogeneity of firms or consumers dyes the fabric of complex dynamics woven from the warp and woof."

Spis treści

Part I   NONLINEAR ECONOMIC DYNAMICS   Chapter 1  The Nature and Significance of Nonlinear Economic Dynamics  Chapter 2  One-Dimensional Nonlinear Cobweb Model with Adaptive Production Adjustment  Chapter 3  Two-Dimensional Nonlinear Cobweb Model with Heterogeneous Producers  Chapter 4  N-Dimensional Globally Coupled Map of Nonlinear Cobweb Model Part II   AGENT-BASED SIMULATION   Chapter 5  From Nonlinear Economic Dynamics to Complexity Economics  Chapter 6  Agent-Based Simulation Model of Market Structure Dynamics I  Chapter 7  Agent-Based Simulation Model of Market Structure Dynamics II

Blurb

This book pursues a nonlinear approach in considering both chaotic dynamical models and agent-based simulation models of economics, as well as their dynamical behaviors. Three key concepts arising in this context are “nonlinearity,” “bounded rationality” and “heterogeneity,” which also make up the title of the book. Nonlinearity is the warp that runs throughout all models because systems that exhibit chaotic or other complex behavior in the absence of any exogenous disturbances are absolutely nonlinear. Bounded rationality constitutes the woof, because economic systems do not exhibit complex behavior if all agents are perfectly rational, as is usually assumed in neoclassical economics. Agents who are boundedly rational have to struggle to do their best with limited information and tend to adapt to their economic environment without knowing what is the best. Furthermore, the heterogeneity of firms or consumers dyes the fabric of complex dynamics woven from the warp and woof.