It takes time to produce commodities, and different production technologies may take different lengths of time. Suppose that firms may switch between different production technologies that take different lengths of time. A natural implication of such a scenario is that not all firms would then...

We extend the profit-based evolutionary cobweb setting in Hommes and Wagener (2010) by assuming that the market is populated by rational producers, which correctly anticipate the next period price, in addition to biased and unbiased fundamentalists. Moreover, we suppose that agents face...

This work analyses the role of asymmetry in beliefs for price dynamics in a cobweb model with heterogeneous expectations and evolutionary selection of predictors. While heterogeneous but symmetric beliefs result in the rational expectations equilibrium price, the effect of asymmetry depends on...

We relax the common assumption of homogeneous beliefs in principal-agent relationships with adverse selection. Principals are competitors in the product market and write contracts also on the base of an expected aggregate. The model is a version of a cobweb model. In an evolutionary learning...

We develop a cobweb model in which firms, facing a two-period production delay, have access to a flexible (costly) and an inflexible (cheap) production technology. Moreover, firms select between production technologies depending on theirevolutionary fitness, measured in terms of past realized...

This paper provides a unified analysis of the impacts of both production delay and agents' belief distributions on the aggregate price fluctuations in a general continuous-time cobweb model. We find that the time inconsistence between demand and supply due to production delay inherently...