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...

While there are various definitions of public goods, the property of joint consumability has become the main or sole defining characteristic of such goods. Among the other characteristics the property of non-excludability is the one primarily discussed. While it is common in the literature to...

This paper develops a two-sector non-scale growth model and investigates the relationship between international trade, growth, and industrialization. It is shown that the counterfactual prediction of new growth theories regarding a positive effect of population growth on the growth rate of per...

In this paper we develop a micro ecosystem model whose basic entities are representative organisms which behave as if maximizing their net offspring under constraints. Net offspring is increasing in prey biomass intake, declining in the loss of own biomass to predators and Allee's Law applies....

A simple rule of thumb which has been successfully used in the basic neoclassical growth model as an alternative to the unstable dynamic optimization solution is shown to be more generally applicable in a non-scale growth model with learning by doing. The model is formulated in accordance with...

Based on economic methodology we model an ecosystem with two species in predator-prey relationship: mice feed on grain and grain feeds on a resource. With optimizing behavior of individual organisms a short-run ecosystem equilibrium is defined and characterized that depends on the farmer's use...

It is argued that due to their general instability dynamic optimization models cannot be used as positive theories of economic growth. The argument is substantiated by (numerical) examples. A simple rule of thumb is provided as an alternative to the RKC model. This rule is shown to perform well...