Testing Marshallian And Walrasian Instability With An Agent-Based Model
Abstract
Do the Marshallian and Walrasian models have a firm foundation on micromotives, or are they just macroabstractions that we could dispense in microeconomics? Previous evidence from experimental economics with human subjects in continuous double auction markets shows that, if the supply is downward-sloping or the demand is upward-sloping, the Marshallian stability model captures the observed phenomena but the Walrasian does not. But, of course, in human subjects experiments the basic question of what the human agents' behavior is remains open. We build an artificial agent-based model to show that the path of convergence needs more intelligence than the zero-intelligence framework. Results from experimental economics with human agents reproduced with artificial agents at a low cost and with an increase in the reliability of the experiment. Not only the existence but also the computation of the stability is relevant. These results cast a shadow on the interest of both instability concepts in economic theory.Download Info
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic Info
Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Advances in Complex Systems.
Volume (Year): 11 (2008)
Issue (Month): 02 ()
Pages: 249-260
Download reference. The following formats are available: HTML
(with abstract),
plain text
(with abstract),
BibTeX,
RIS (EndNote, RefMan, ProCite),
ReDIF
Handle: RePEc:wsi:acsxxx:v:11:y:2008:i:02:p:249-260
Contact details of provider:
Web page: http://www.worldscinet.com/acs/acs.shtml
Order Information:
Email:
For corrections or technical questions regarding this item, or to correct its listing, contact: (Tai Tone Lim).
Related research
Keywords: ACE; market dynamics; artificial economics; Walrasian instability;References
No references listed on IDEASYou can help add them by filling out this form.
Citations
Lists
This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.Statistics
Access and download statisticsCorrections
When requesting a correction, please mention this item's handle: RePEc:wsi:acsxxx:v:11:y:2008:i:02:p:249-260For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tai Tone Lim).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.