nep-evo New Economics Papers
on Evolutionary Economics
Issue of 2007‒01‒14
four papers chosen by
Matthew Baker
US Naval Academy, USA

  1. Imitation with Intention and Memory: an Experiment By Astrid Matthey
  2. Emotions Enforce Fairness Norms (a Simple Model of Strong Reciprocity) By López-Pérez, Raúl
  3. Memory and Asset Pricing Models with Heterogeneous Beliefs By Verbic, Miroslav
  4. Knowing What You Like versus Discovering What You Want: The Influence of Choice Making Goals on Decision Satisfaction By Cassie Mogilner; Tamar Rudnick; Sheena Iyengar

  1. By: Astrid Matthey
    Abstract: Three results emerge from a simple experiment on imitation. First, I find behavior which strongly suggests an intention to imitate. Second, players im- itate successful other players rather than repeating successful actions. Third, to find imitation examples, players use several periods of memory. This lends support to learning models with a non-trivial role of memory. The experiment analyzes imitation in an individual learning context. It sup- plements the results obtained for imitation in evolutionary processes.
    Keywords: Imitation, Learning, Memory, Experiments
    JEL: D01 D83
    Date: 2006–12
  2. By: López-Pérez, Raúl (Departamento de Análisis Económico (Teoría e Historia Económica). Universidad Autónoma de Madrid.)
    Abstract: In experimental games, many subjects cooperate contrary to their material interest and they do that in a reciprocal manner. In addition, many subjects punish those others who behave unkindly, and previous history usually influences subjects’ choices. We propose a simple game-theoretical model to account for these and other experimental phenomena, and compare it with other models of social preferences and reciprocity.
    Keywords: Emotions; Fairness; Path-Dependency; Strong Reciprocity; Social Norms
    JEL: C70 C72 D63 D64 D74 Z13
  3. By: Verbic, Miroslav
    Abstract: The paper discusses the role of memory in asset pricing models with heterogeneous beliefs. In particular, we were interested in how memory in the fitness measure affects stability of evolutionary adaptive systems and survival of technical trading. In order to obtain an insight into this matter two cases were analyzed; a two-type case of fundamentalists versus contrarians and a three-type case of fundamentalists versus opposite biases. It has been established that increasing memory strength has a stabilizing effect on dynamics, though it is not able to eliminate speculative traders’ short-run profit seeking behaviour from the market. Furthermore, opposite biases do not seem to lead to chaotic dynamics, even when there are no costs for fundamentalists. Apparently some (strong) trend extrapolator beliefs are needed in order to trigger chaotic asset price fluctuations.
    Keywords: asset pricing; biased beliefs; contrarians; fitness measure; fundamentalists; heterogeneous beliefs; memory strength; stability
    JEL: G12 E32 C02 C62 C61
    Date: 2006–08–15
  4. By: Cassie Mogilner; Tamar Rudnick; Sheena Iyengar (School of Business, Columbia University)
    Abstract: This investigation contrasts choosers who have one of two choice making goals—to either select an option matching previously established preferences or to construct a preference from among the options provided. Evidence from field and laboratory studies, in which choosers selected magazines, indicates that irrespective of the number of options provided, chooser satisfaction results from fulfilling one’s specific choice making goal. For Preference Matchers, satisfaction requires a choice set that includes their established favorite. For Preference Constructors, satisfaction requires perceptions of a variety of options to identify their optimal preference. Display cues (i.e., categories) serve to enhance these perceptions of choice.
    Keywords: Preference Matching, Preference Constructors, Display Cues
    Date: 2006–05

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