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Connecting adaptive behaviour and expectations in models of innovation: The Potential Role of Artificial Neural Networks

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Murat Yildizoglu

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Abstract

In this methodological work I explore the possibility of explicitly modelling expec-tations conditioning the R&D decisions of firms. In order to isolate this problem from the controversies of cognitive science, I propose a black box strategy through the concept of internal model . The last part of the article uses artificial neural networks to model the expectations of firms in a model of industry dynamics based on Nelson & Winter (1982).

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Paper provided by Equipe Industries Innovation Institutions, Université Bordeaux IV, France in its series Working Papers with number 2001-2.

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Date of creation: 2001
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Handle: RePEc:iii:wpeiii:2001-2

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Related research
Keywords: Neural networks; Genetic algorithms; Bounded rationality; learning; expectations; innovation dynamics.;

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Find related papers by JEL classification:
L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Winter, Sidney G., 1984. "Schumpeterian competition in alternative technological regimes," Journal of Economic Behavior & Organization, Elsevier, vol. 5(3-4), pages 287-320. [Downloadable!] (restricted)
  2. Kwasnicki, Witold & Kwasnicka, Halina, 1992. "Market, innovation, competition: An evolutionary model of industrial dynamics," Journal of Economic Behavior & Organization, Elsevier, vol. 19(3), pages 343-368, December. [Downloadable!] (restricted)
  3. Kwasnicki, Witold, 1998. "Skewed distributions of firm sizes--an evolutionary perspective," Structural Change and Economic Dynamics, Elsevier, vol. 9(1), pages 135-158, March. [Downloadable!] (restricted)
  4. G. Silverberg & B. Verspagen, 1995. "Evolutionary Theorizing on Economic Growth," Working Papers wp95078, International Institute for Applied Systems Analysis. [Downloadable!]
  5. Gerard Ballot & Erol Taymaz, 1999. "Technological Change, Learning and Macro-Economic Coordination: an Evolutionary Model," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 2. [Downloadable!]
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  1. Guido Fioretti, 2002. "Recognizing Investment Opportunities at the Onset of Recoveries," Macroeconomics 0207008, EconWPA. [Downloadable!]
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