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Heuristic learning and the discovery of specialization and exchange

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  • Kimbrough, Erik O.

Abstract

I develop and calibrate an agent-based model of boundedly rational, adaptive agents in a two-good production and exchange economy to replicate human-subject outcomes in the same eight-person experimental economy. To test agents' ability to capture human behavior, I extend the model and use its output to make predictions about a second experimental environment in which the group of eight agents is slowly constructed by merging smaller groups. This environment improves human-subject performance in the specialization and exchange task, and commensurate improvement emerges for some parameterizations of the agent-based model. This iterative process yields incremental improvement of decision-level theories about economic discovery.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 35 (2011)
Issue (Month): 4 (April)
Pages: 491-511

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Handle: RePEc:eee:dyncon:v:35:y:2011:i:4:p:491-511

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Web page: http://www.elsevier.com/locate/jedc

Related research

Keywords: Agent-based modeling Experimental economics Exchange Specialization;

References

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  15. Arifovic, Jasmina, 1996. "The Behavior of the Exchange Rate in the Genetic Algorithm and Experimental Economies," Journal of Political Economy, University of Chicago Press, vol. 104(3), pages 510-41, June.
  16. Duffy, John, 2006. "Agent-Based Models and Human Subject Experiments," Handbook of Computational Economics, in: Leigh Tesfatsion & Kenneth L. Judd (ed.), Handbook of Computational Economics, edition 1, volume 2, chapter 19, pages 949-1011 Elsevier.
  17. Starr, Ross M, 1976. "Decentralized Nonmonetary Trade," Econometrica, Econometric Society, vol. 44(5), pages 1087-89, September.
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