Endogenous neighborhood formation in a local coordination model with negative network externalities
Article Abstract:
A study on pure co-ordination games played by agents located on one-dimensional lattices with the assumption that network externalities become eventually negative as neighborhood sizes increase is presented. The society is also seen as always converging to a steady state characterized by high levels of coordination and small neighborhood sizes. It is observed that neighborhood adjustment allows for higher coordination than if structures were static and that large populations attain higher coordination provided that average initial neighborhood sizes are too small.
Publication Name: Journal of Economic Dynamics & Control
Subject: Economics
ISSN: 0165-1889
Year: 2005
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Partial differential equation modelling for stochastic fixed strategy distributed systems
Article Abstract:
Fixed strategy models, in which agents are endowed with a behavioral strategy as a primitive of the economy, are widely used in distribution systems where interaction is governed by local effects. For analyses of these models, a methodology is developed making use of partial differential equation systems. It is observed that using this methodology both analytical and numerical results may be obtained for the long-run dynamics of the stochastic system.
Publication Name: Journal of Economic Dynamics & Control
Subject: Economics
ISSN: 0165-1889
Year: 2005
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Indeterminacy, sunspots, and development traps
Article Abstract:
A study on the effects of global sunspot fluctuations in a production function with externalities, where the Pareto-inferior steady state (poverty trap) is indeterminate is presented. For this purpose a model that relates to the model of Benhabib and Farmer is considered.
Publication Name: Journal of Economic Dynamics & Control
Subject: Economics
ISSN: 0165-1889
Year: 2005
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