Convergence of Income Growth Rates in Evolutionary Agent-Based Economics
AbstractWe consider a heterogeneous agent-based economic model where economic agents have strictly bounded rationality and where income allocation strategies evolve through selective imitation. Income is calculated by a Cobb-Douglas type production function, and selection of strategies for imitation depends on the income growth rate they generate. We show that under these conditions, when an agent adopts a new strategy, the effect on its income growth rate is immediately visible to other agents, which allows a group of imitating agents to quickly adapt their strategies when needed.
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Bibliographic InfoPaper provided by arXiv.org in its series Papers with number 1009.2721.
Date of creation: Sep 2010
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Web page: http://arxiv.org/
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-09-25 (All new papers)
- NEP-CMP-2010-09-25 (Computational Economics)
- NEP-EVO-2010-09-25 (Evolutionary Economics)
- NEP-FDG-2010-09-25 (Financial Development & Growth)
- NEP-MIC-2010-09-25 (Microeconomics)
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