New Economics Papers
on Computational Economics
Issue of 2008‒03‒08
four papers chosen by

  1. A Stochastic Multiple Players Multi-Issues Bargaining Model for the Piave River Basin By Alessandra Sgobbi; Carlo Carraro
  2. An Evolutionary Framework for Determining Heterogeneous Strategies in Multi-Agent Marketplaces By Babanov, A.; Ketter, W.; Gini, M.
  3. Trade Openness and Gender in Uruguay: a CGE Analysis By Inés Terra; Marisa Bucheli; Carmen Estrades
  4. Should Network Structure Matter in Agent-Based Finance? By Alfarano, Simone; Milakovic, Mishael

  1. By: Alessandra Sgobbi (Fondazione Eni Enrico Mattei); Carlo Carraro (Fondazione Eni Enrico Mattei, University of Venice, CEPR, CEPS, CMCC and CESifo)
    Abstract: The objective of this paper is to investigate the usefulness of non-cooperative bargaining theory for the analysis of negotiations on water allocation and management. We explore the impacts of different economic incentives, a stochastic environment and varying individual preferences on players’ strategies and equilibrium outcomes through numerical simulations of a multilateral, multiple issues, non-cooperative bargaining model of water allocation in the Piave River Basin, in the North East of Italy. Players negotiate in an alternating-offer manner over the sharing of water resources (quantity and quality). Exogenous uncertainty over the size of the negotiated amount of water is introduced to capture the fact that water availability is not known with certainty to negotiating players. We construct the players’ objective function with their direct input. We then test the applicability of our multiple players, multi-issues, stochastic framework to a specific water allocation problem and conduct comparative static analyses to assess sources of bargaining power. Finally, we explore the implications of different attitudes and beliefs over water availability.
    Keywords: Bargaining, Non-Cooperative Game Theory, Simulation Models, Uncertainty
    JEL: C61 C71 C78
    Date: 2007–11
  2. By: Babanov, A.; Ketter, W.; Gini, M. (Erasmus Research Institute of Management (ERIM), RSM Erasmus University)
    Abstract: We propose an evolutionary approach for studying the dynamics of interaction of strategic agents that interact in a marketplace. The goal is to learn which agent strategies are most suited by observing the distribution of the agents that survive in the market over extended periods of time. We present experimental results from a simulated market, where multiple service providers compete for customers using different deployment and pricing schemes. The results show that heterogeneous strategies evolve and co-exist in the same market.
    Keywords: trading agents;multi-agent systems;genetic algorithms;simulation
    Date: 2008–01–17
  3. By: Inés Terra (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República); Marisa Bucheli (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República); Carmen Estrades (Departamento de Economía, Facultad de Ciencias Sociales, Universidad de la República)
    Abstract: In this paper we analyze the gender differentiated impacts of trade openness in Uruguay using a gender aware CGE model with endogenous labor supply and a home production function. We simulate complete trade liberalization and an increase in tariffs to the level of 1994. Trade liberalization increases female employment and wages, reducing the gender wage gap. These findings are consistent with Çagatay (2001) and Fofana et al (2003). The effect of trade openness on time distribution of workers is different by skills. Skilled workers, mainly women, reduce time spent in leisure and domestic work increasing labor supply. In contrast, unskilled workers increase leisure time, especially men. Trade openness leads to a more equitable distribution of time spent in domestic work. When there is a more imperfect substitution among genders in the home production function, women reduce more leisure time. The increase in tariff to the level of 1994 has the opposite results.
    Keywords: trade openness, gender, general equilibrium model, home production, leisure, wage curve
    JEL: D13 J16 J22 F16
    Date: 2007–10
  4. By: Alfarano, Simone; Milakovic, Mishael
    Abstract: We derive microscopic foundations for a well-known probabilistic herding model in the agent-based finance literature. Lo and behold, the model is quite robust with respect to behavioral heterogeneity, yet structural heterogeneity, in the sense of an underlying network structure that describes the very feasibility of agent interaction, has a crucial and non-trivial impact on the macroscopic properties of the model.
    Keywords: Herding, networks, mean-field approach, N-dependence
    Date: 2008

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