This paper explores the idea of constructing theoretical economic agents that behave like actual human agents and using them in neoclassical economic models. It does this in a repeated-choice setting by postulating "artificial agents" who use a learning algorithm calibrated against human...

We analyze the influence of innovation on growth rates of employment in 859 Dutch manufacturing firms over the period 1983-1988. Whereas, the (growth of the) R&D intensity of firms has a slightly negative impact on employment, we find that firms with a high share of product-related R&D (as a...

We consider a differential game of R&D competition and explore the impact of rivalry on the firms' investment behavior over time. Using closed-loop strategies and hence allowing for strategic interactions among rival firms, we show that R&D spending by the individual competitor is increased due...

A politicoeconomic model dealing with the interaction of private innovation and public regulation is presented. Causes and effects of this interdependence are investigated with special regard to the externalities which accompany innovations and make them into a partly public good. Our main...

In this paper, we study a co-evolutionary model of economic change at two hierarchical levels. At the lower level, "institutions" are given and the focus is on how resources are allocated and innovation produced in response to the pay off structure induced by prevailing institutions. At the...

In this and a companion paper (Lane 1993), I describe a class of models, called artificial worlds (AWs), that are designed to give insight into a process called emergent hierarchical organization (EHO). This paper introduces the ideas of EHO and AWs and discusses some of the interferential...

This paper suggests an approach, based upon an analogy with different species competing in the environment for fixed resources, to the question of why variety is such a persistent feature of free market economies. Attention is centered upon a market characterised by a group of consumers with a...

This paper investigates the ceteris-paribus effects of labor reducing technical progress on industry-wide employment under different market regimes. We distinguish between a contestable market, a monopoly, and a market with bounded supplier power. Under a constant wage rate, employment will not...

Concern over economic efficiency has increased in recent years in the U.K. and has been one of the major driving forces behind the regulatory reforms and privatisation measures which have been initiated since 1979. The amount of detailed work on economic efficiency, and especially on...