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Was Hayek an Ace?

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  • Nicolaas J. Vriend

    ()
    (Queen Mary, University of London, Department of Economics)

Abstract

To address the question whether Hayek might have been an agent-based computational economist (ACE) avant-la-lettre, I consider an ACE model concerning the phenomenon of information contagion. Alongside increasing returns, network externalities, and information cascades, information contagion has been presented in the literature as an explanation for particular patterns of macrobehavior that may seem at odds with the underlying micromotives. Whereas these other explanations have been shown to have a proper microfoundation, information contagion has remained a phenomenon that seemed to occur only when certain ad hoc rules of thumb for individual behavior are assumed. I show how information-contagious behavior can emerge in a coevolutionary process of interacting adaptive agents, how this is related to various Hayekian themes, and how ACE research in general can be seen as an application of Hayek's methodological insights.

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Bibliographic Info

Article provided by Southern Economic Association in its journal Southern Economic Journal.

Volume (Year): 68 (2002)
Issue (Month): 4 (April)
Pages: 811-840

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Handle: RePEc:sej:ancoec:v:68:4:y:2002:p:811-840

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Citations

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Cited by:
  1. Koppl, Roger, 2010. "Some epistemological implications of economic complexity," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 76(3), pages 859-872, December.
  2. Sandye Gloria-Palermo, 2013. "Equilibrium versus Process: A Confrontation between Mainstream and Austrian Ontology," GREDEG Working Papers, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis 2013-39, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
  3. Kirman, Alan P. & Vriend, Nicolaas J., 2001. "Evolving market structure: An ACE model of price dispersion and loyalty," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 25(3-4), pages 459-502, March.
  4. Roberto Leombruni, 2002. "The Methodological Status of Agent-Based Simulations," LABORatorio R. Revelli Working Papers Series, LABORatorio R. Revelli, Centre for Employment Studies 19, LABORatorio R. Revelli, Centre for Employment Studies.
  5. Fontana, Magda, 2010. "Can neoclassical economics handle complexity? The fallacy of the oil spot dynamic," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 76(3), pages 584-596, December.
  6. Chen, Shu-Heng, 2012. "Varieties of agents in agent-based computational economics: A historical and an interdisciplinary perspective," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 36(1), pages 1-25.
  7. Buda, Rodolphe, 2001. "Les algorithmes de la modélisation : une analyse critique pour la modélisation économique," MPRA Paper 3926, University Library of Munich, Germany, revised Jul 2004.
  8. Magda Fontana, 2006. "Computer simulations, mathematics and economics," International Review of Economics, Springer, Springer, vol. 53(1), pages 96-123, March.
  9. Fontana Magda, 2008. "The complexity approach to economics : a Paradigm shift," CESMEP Working Papers, University of Turin 200801, University of Turin.
  10. David Chavalarias, 2006. "Metamimetic Games : Modeling Metadynamics in Social Cognition," Post-Print, HAL hal-00007743, HAL.
  11. Guinevere Nell, 2010. "Competition as market progress: An Austrian rationale for agent-based modeling," The Review of Austrian Economics, Springer, Springer, vol. 23(2), pages 127-145, June.
  12. Sandye Gloria-Palermo, 2013. "In Search of the Right Tool: From Formalism to Constructivist Modelling," GREDEG Working Papers, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis 2013-33, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
  13. Richard Wallick, 2012. "Agent-based modeling, public choice, and the legacy of Gordon Tullock," Public Choice, Springer, Springer, vol. 152(1), pages 223-244, July.
  14. Faggini, Marisa & Parziale, Anna, 2011. "Fitness landscape and tax planning: NK model for fiscal federalism," MPRA Paper 33770, University Library of Munich, Germany.
  15. Jie-Shin Lin, 2005. "Learning in a Network Economy," Computational Economics, Society for Computational Economics, Society for Computational Economics, vol. 25(1), pages 59-74, February.
  16. Rosser, J. Barkley, 2012. "Emergence and complexity in Austrian economics," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 81(1), pages 122-128.
  17. Richard Wagner, 2008. "Finding social dilemma: West of Babel, not east of Eden," Public Choice, Springer, Springer, vol. 135(1), pages 55-66, April.

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