We discuss the relevance of the concept of rational behavior in economic theory and suggest, on the basis of modern brain research results, to abstain from this notion and instead to apply behavioral rules of thumb in decision-making, especially if these rules can be derived from rational...

The relationship between international trade, growth, and industrialization is analyzed in a two-sector non-scale growth model. The counterfactual prediction of new growth theories regarding a positive effect of population growth on per capita income growth is shown to be alleviated by allowing...

This article introduces dynamic network externalities into a Hotelling-like model of competition between commercial and free software. The assumption of linear network effects enables a full-fledged dynamic analysis taking boundary solutions into account. The extent of network effects related to...

This paper analyzes the dynamics of a two-dimensional microfounded predator-prey model. It is shown that the dynamics closely resemble those of a model commonly used in mathematical biology if parameters of the latter are suitably restricted. The positive equilibrium of the microfounded model is...

New growth theories suffer from their counterfactual prediction that a higher (rate of) population (growth) generally implies a higher growth rate of per capita income. This population puzzle is solved by introducing imported intermediates and an exogenously growing world export demand creating...