Related papers: Spontaneous Economic Order
Rationality is frequently associated with making the best possible decisions. It's widely acknowledged that humans, as rational beings, have limitations in their decision-making capabilities. Nevertheless, recent advancements in fields,…
General equilibrium equations in economics play the same role with many-body Newtonian equations in physics. Accordingly, each solution of the general equilibrium equations can be regarded as a possible microstate of the economic system.…
Although classical economic theory is based on the concept of stable equilibrium, real economic systems appear to be always out of equilibrium. Indeed, they share many of the dynamical features of other complex systems, e.g., ecological…
We consider "time-of-use" pricing as a technique for matching supply and demand of temporal resources with the goal of maximizing social welfare. Relevant examples include energy, computing resources on a cloud computing platform, and…
A population of heterogenous agents compeeting through a minority rule is investigated. Agents which frequently loose are selected for evolution by changing their strategies. The stationary composition of the population resulting for this…
We consider flows over time within the deterministic queueing model and study the solution concept of instantaneous dynamic equilibrium (IDE) in which flow particles select at every decision point a currently shortest path. The length of…
People choose friendships with people similar to themselves, i.e. they sort by resemblence. Economic studies have shown when sorting is optimal and constitute an equilibrium, however, this presumes lack of beneficial spillovers. We…
This paper gives a constructive treatment of McKenzie's theorem on the existence of general equilibria. While the full theorem does not admit a constructive proof, and hence does not admit a computational realisation, we show that if we…
In this work, we apply a common economic tool, namely money, to coordinate network packets. In particular, we present a network economy, called PacketEconomy, where each flow is modeled as a population of rational network packets, and these…
In this chapter the complex systems are discussed in the context of economic and business policy and decision making. It will be showed and motivated that social systems are typically chaotic, non-linear and/or non-equilibrium and therefore…
Context: Competitiveness is the key to a sustainable development and it demands agility at the business and organizational levels, which in turn requires a flexible and customizable IT environment and effective and responsive governance in…
We present a broad agenda for meaningful banking regulation reform aiming the creation of evolutive competitive environment to maximize the effectiveness of international financial system through the introduction of fair competition process…
In fair division of indivisible goods, using sequences of sincere choices (or picking sequences) is a natural way to allocate the objects. The idea is as follows: at each stage, a designated agent picks one object among those that remain.…
We study the self-assembly of a complex network of collaborations among self-interested agents. The agents can maintain different levels of cooperation with different partners. Further, they continuously, selectively, and independently…
The state of economic theory and accumulated facts from the different branches of the economic science require to analyze the concept of the description of economy systems. The economic reality generates the problems the solution of that is…
With a novel search algorithm or assortment planning or assortment optimization algorithm that takes into account a Bayesian approach to information updating and two-stage assortment optimization techniques, the current research provides a…
The question of "Justice" still divides social research and moral philosophy. Several Theories of Justice and conceptual approaches compete here, and distributive justice remains a major societal controversy. From an evolutionary point of…
This paper investigates the evolving dynamics of international trade, emphasizing the strategic interplay between competition and cooperation within the global trade network. It argues that competitive advantages - rather than traditional…
How do rational agents self-organize when trying to connect to a common target? We study this question with a simple tree formation game which is related to the well-known fair single-source connection game by Anshelevich et al. (FOCS'04)…
The emergence of artificial intelligence and robotics is catalyzing a profound transformation in the nature of human labor, fueling a contentious debate about the future of employment. While prominent studies predict substantial job…