The possibility that low dimensional chaotic systems generate stochastic dynamics is now a standard idea in economics. As a consequence, modern time series analysis has among its primary goals the design and computer implementation of techniques for distinguishing complex deterministic dynamics...

This paper extends the N -person IPD game into a more interesting one in economics: the oligopoly game. Due to its dynamics of market share, the oligopoly game is more complicated and need not be exactly an N -person IPD game. Using genetic algorithms, we simulate oligopoly games under various...

Following the concept of "adaptively rational equilibrium", Brock and Hommes establish a simple present discounted value asset-pricing model with heterogeneous beliefs. Agents adapt their beliefs over time by choosing from different predictors or expectations functions, based upon their past...

The El Farol or bar attendance problem provides a simple paradigm for analyzing public goods like the Internet, which may simultaneously suffer from congestion and coordination problems. This paper reviews the El Farol problem and surveys previous solutions, which typically involve complex...

In dynamic general-equilibrium economic models, equilibrium may be indeterminate, so a continuum of equilibrium trajectories may converge to the same steady state. Often, those mechanisms leading to indeterminacy, like increasing returns to scale, may also lead to multiple steady states and...

This paper is concerned with the organization of transactions of goods and services between consecutive stages of activity. A traditional theory of organization, transaction-cost economics, assumes that organizational form (market and hierarchy) is adjusted to the attributes of the transactions....

We consider efficient computational algorithms for vertical complementarity problems. Vertical complementarity represents the equilibrium relationship among functions such that min (F1(x),...,Fm(x))=0 . This form is more general than the ordinary complementarity relationship, min (x, F(x))=0 ....

As population aging sets in, publicly managed pension systems operating on the basis of pay-as-you-go (PAYG) schemes face difficulties in maintaining contribution/replacement rate-retirement age configurations. The changing age composition of societies during demographic transition gradually...

In this paper we study the finite sample properties of the nonparametric method developed by Stanton and later extended by Boudoukh, et al. for the estimation of the drifts and diffusions of multifactor continuous-time term-structure models. Monte Carlo simulations from a known parametric model...

In this paper, we propose a new architecture to study artificial stock markets. This architecture rests on a mechanism called "school" which is a procedure for mapping the phenotype to the genotype or, in plain English, to uncover the secret of success. We propose an agent-based model of school,...