Getting Big Too Fast: Strategic Dynamics with Increasing Returns and Bounded Rationality

2006 ◽  
Author(s):  
John Sterman ◽  
Rebecca M. Henderson ◽  
Eric D. Beinhocker ◽  
Lee I. Newman
Keyword(s):  
Bounded Rationality ◽  
Increasing Returns

Getting Big Too Fast: Strategic Dynamics with Increasing Returns and Bounded Rationality

2007 ◽  
Vol 53 (4) ◽  
pp. 683-696 ◽  
Author(s):  
John D. Sterman ◽  
Rebecca Henderson ◽  
Eric D. Beinhocker ◽  
Lee I. Newman
Keyword(s):  
Bounded Rationality ◽  
Increasing Returns

(Un)Bounded Rationality

1985 ◽  
Vol 30 (4) ◽  
pp. 263-265
Author(s):  
Donald E. Broadbent
Keyword(s):  
Bounded Rationality

Structuralism as a Pamphlet (On the Book by E. Reinert “How Rich CountriesGot Rich... And Why Poor Countries Stay Poor”. 2nd ed.)

2014 ◽  
pp. 147-153
Author(s):  
P. Orekhovsky
Keyword(s):  
Economic Theory ◽  
Economic Development ◽  
Structural Analysis ◽  
Increasing Returns ◽  
The Other ◽  
Static Theory ◽  
Poor Countries ◽  
Historical School ◽  
Socio Economic Development ◽  
The Relationship

The review outlines the connection between E. Reinert’s book and the tradition of structural analysis. The latter allows for the heterogeneity of industries and sectors of the economy, as well as for the effects of increasing and decreasing returns. Unlike the static theory of international trade inherited from the Ricardian analysis of comparative advantage, this approach helps identify the relationship between trade, production, income and population growth. Reinert rehabilitates the “other canon” of economic theory associated with the mercantilist tradition, F. Liszt and the German historical school, as well as a reconside ration of A. Marshall’s analysis of increasing returns. Empirical illustrations given in the book reveal clear parallels with the path of Russian socio-economic development in the last twenty years.

Intra-industry and inter-industry trade through the lens of comparative and absolute advantage

2016 ◽  
pp. 112-128
Author(s):  
A. Gnidchenko
Keyword(s):  
International Trade ◽  
Product Quality ◽  
Vital Role ◽  
Increasing Returns ◽  
Traditional View ◽  
Export Diversification ◽  
Industry Trade ◽  
Long Time ◽  
Absolute Advantage

The article surveys the literature that emphasizes the importance of comparative and absolute advantages for intra- and inter-industry trade. Two conclusions follow form the survey. First, unlike the traditional view, intra-industry trade is determined rather by technology than by increasing returns. Second, absolute advantages that have been ignored in international trade models for a long time play a vital role through their linkages with product quality and export diversification. We also discuss a new strand of literature that models international trade with the assumption of non-homothetic preferences.

Agent-Based Computational Model

2017 ◽  
Author(s):  
Joshua M. Epstein
Keyword(s):  
Computational Model ◽  
Bounded Rationality ◽  
Time Scales ◽  
Spatially Explicit ◽  
Agent Based ◽  
Affective Component ◽  
Elementary Type ◽  
Social Component ◽  
Different Time Scales

This part describes the agent-based and computational model for Agent_Zero and demonstrates its capacity for generative minimalism. It first explains the replicability of the model before offering an interpretation of the model by imagining a guerilla war like Vietnam, Afghanistan, or Iraq, where events transpire on a 2-D population of contiguous yellow patches. Each patch is occupied by a single stationary indigenous agent, which has two possible states: inactive and active. The discussion then turns to Agent_Zero's affective component and an elementary type of bounded rationality, as well as its social component, with particular emphasis on disposition, action, and pseudocode. Computational parables are then presented, including a parable relating to the slaughter of innocents through dispositional contagion. This part also shows how the model can capture three spatially explicit examples in which affect and probability change on different time scales.

Reasonable Bounds on Rationality

2020 ◽  
Author(s):  
Igor Grossmann ◽  
Richard Eibach
Keyword(s):  
Decision Making ◽  
Bounded Rationality ◽  
Cognitive Resources ◽  
Previous Theory ◽  
Making Choices ◽  
Points Of View ◽  
Sound Judgment

Previous theory and research on bounded rationality has emphasized how limited cognitive resources constrain people from making utility maximizing choices. This paper expands the concept of bounded rationality to consider how people’s rationality may be constrained by their internalization of a qualitatively distinct standard for sound judgment, which is commonly labeled reasonableness. In contrast to rationality, the standard of reasonableness provides guidance for making choices in situations that involve balancing incommensurable values and interests or reconciling conflicting points-of-view. We review recent evidence showing that laypeople readily recognize the distinctions between rationality and reasonableness and thus are able to utilize these as distinct standards to inform their everyday decision-making. The fact that people appear to have internalized rationality and reasonableness as distinct standards of sound judgment supports the notion that people’s pursuit of rationality may be bounded by their determination to also be reasonable.

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