Many representative agent macro models suffer from parameter identification failure. These issues extend to the structural parameters of the standard incomplete markets model of Aiyagari (1994), the workhorse heterogeneous agent model for household and firm behavior. Similar as in representative...

Using a simple agent-based stock-flow consistent (AB-SFC) framework, this paper presents a fully formalised version of the two-price model of capital investment which forms an important but relatively neglected component of Hyman Minsky's Financial Instability Hypothesis. The model presented in...

Artificial Intelligence (AI) based entities are already causing damages and fatalities in today's commercial world. As a result, the dispute about tort liability of AI-based machines, algorithms, agents and robots is exponentially advancing in the scholarly world and outside of it. When it comes...

Firms strategically disclose product information in order to attract consumers, butrecipients often find it costly to process all of it, especially when products have complexfeatures. We study a model of competitive information disclosure by two senders, inwhich the receiver may garble each...

We consider a persuasion problem between a sender and a non-expected utility maximizing receiver whose utility may be nonlinear in her belief; we call such receivers risk-conscious. Such utility models arise, for example, when the receiver exhibits sensitivity to the variance of the payoff on...

This paper examines the behavior of adaptive agents in a stochastic dynamic version of the Hotelling's location model. We conduct an innovative agent-based simulation under the Hotelling's setting with two agents who use the Nash Q-learning mechanism for adaptation. This allows us to explore...

Short-sale constrained past-winners and losers both underperform strongly in the first year post-formation, earning market-adjusted returns of −13%, and −17%, respectively. However, constrained winners continue to underperform for the following four years, earning a cumulative...

The issue of income inequality occupies a prominent position in the research agenda of academic and policy circles alike, especially after the crisis of 2008, due to its potential causal link with the development of credit bubbles and therefore the emergence of financial crises. This paper...

We repurpose an agent-based model of ethnocentrism to show how violence affects people's willingness to cooperate with members of other groups. We account for extra benefits that arise from interacting with a member of the same culture (‘cultural boosts') and for mutual gains from cooperative...

We describe an agent-based model where trades happen in event-based time called directional-change intrinsic time. Events are defined as the reversal price moves of a directional-change threshold from a local extreme. The price impact of traded volumes is modelled according to the empirically...