We consider technology choices between green and brown technologies by firms. We use insights from complexity theory and also take account of true uncertainty in designing public policy. The green technology offers relatively higher returns to scale from adoption, and there are type-contingent...

Cumulative causation arises when a process is self-reinforcing and grows ever stronger, so that it does not equilibrate. It will continue indefinitely unless it is checked by outside intervention or leads to a crisis and systemic breakdown. Ideas of cumulative causation have numerous...

The Philippines' Agriculture and Fisheries Modernization Act (AFMA) identifies one of the modernization objectives as "to encourage horizontal and vertical integration, consolidation, and expansion of agriculture and fisheries activities, group functions and other services through the...

We develop a market model which explains how prices react to short-run demand variations when the number of active price-setting firms is held fixed on its long-run level. We assume that for each firm the average production cost function is U-shaped, that customers are imperfectly informed about...

This paper investigates price setting when firms produce with increasing returns and customers are imperfectly informed about prices but customers can search. It is shown that there exists a unique randomization equilibrium where each customer is offered a random price by each firm known to him....

We consider firms' choices between a clean technology that benefits, and a dirty technology that harms, the environment. Green firms are more suited to the clean, and brown firms are more suited to the dirty technology. We use a model derived from complexity theory that takes account of true...

This paper delves into geographical agglomeration patterns of economic activities focusing on the connection between these agglomeration tendencies and sectoral patterns of innovative activities. Within a broad evolutionary perspective, we refine upon incumbent statistical models, trying to...

We analyse the implications of unions (efficient bargaining) for multiplicity of stationary states and welfare, local indeterminacy, bifurcations and endogenous fluctuations (deterministic and stochastic). We use an overlapping generations model with external increasing returns to scale, where...

We study network formation in a strategic setting where every agent strives for short paths to the other agents. The main parameter of our model is the marginal rate of substitution between network benefits and linking costs. We provide boundaries of stable networks for increasing and decreasing...