nep-evo New Economics Papers
on Evolutionary Economics
Issue of 2007‒03‒17
five papers chosen by
Matthew Baker
US Naval Academy, USA

  1. Heuristic Twists and Ontological Creeds - Road Map for Evolutionary Economics By U. Witt
  2. Humans versus computer algorithms in repeated mixed strategy games By Spiliopoulos, Leonidas
  3. Do repeated game players detect patterns in opponents? Revisiting the Nyarko & Schotter belief elicitation experiment By Spiliopoulos, Leonidas
  4. Flexible transition strategies towards future well-to-wheel chains: an evolutionary modelling approach By Malte Schwoon; Floortje Alkemade; Koen Frenken; Marko P. Hekkert
  5. The Neuroscience of Consumer Decision-Making By Pirouz, Dante

  1. By: U. Witt
    Abstract: What is special about the evolutionary approach? This question is given quite different, and partly incommensurable, answers in evolutionary economics. The present paper shows how the different answers correspond with, on the one hand, the particular heuristic twists by which the corresponding authors arrive at their hypotheses (e.g. by borrowing analogies from evolutionary biology). On the other hand, the answers hinge on different ontological assumption (i.e. on whether or not evolution in nature and in the economy are viewed as belonging to the same sphere of reality and, hence, as mutually dependent processes). By distinguishing these two dimensions a road map for evolutionary economics is drawn up that helps to better understand where, and why, the competing interpretations differ. In order to assess their achievements and their potential for future research, some results of an opinion poll among evolutionary economists are presented and discussed.
    Keywords: Length 28 pages
    Date: 2007–03
  2. By: Spiliopoulos, Leonidas
    Abstract: This paper addresses the question of strategic change in humans’ be- havior conditional on opponents’ play. In order to implement this e
    Keywords: learning; artifical intelligence; mixed strategy; game theory; repeated games; behavioral game theory; ewa; reinforcement learning; fictitious play; simulations; experimental economics; computational economics; non-cooperative games
    JEL: C91 C72 C73
    Date: 2007–03–11
  3. By: Spiliopoulos, Leonidas
    Abstract: The purpose of this paper is to reexamine the seminal belief elicitation experiment by Nyarko & Schotter (2002) under the prism of pattern recog- nition. Instead of modeling elicited beliefs by a simple weighted fictitious play model this paper proposes a generalized variant of fictitious play that is able to detect two period patterns in opponents’ behavior. Evidence is presented that these generalized pattern detection models provide a better fit than standard weighted fictitious play player. Heterogeneity amongst individuals was found as to the complexity of patterns that were detected and utilized in belief formation - a large percentage of players demon- strated the ability to detect two-period patterns in opponents’ play. For players using a variant of the weighted ficititious play belief formation rule without pattern detection it was found that the memory decay parameter was not significantly di
    Keywords: learning; game theory; behavioral game theory; fictitious play; repeated games; mixed strategy; non-cooperative games; pattern recognition; pattern detection; experimental economics; beliefs; belief elicitation; strategic
    JEL: C63 C72 C73
    Date: 2007–03–11
  4. By: Malte Schwoon (Statkraft, Duesseldorf); Floortje Alkemade; Koen Frenken; Marko P. Hekkert
    Abstract: Well to wheel (WTW) analyses mainly focus on alternative road fuel/vehicle systems that are very different from the current crude oil based individual transport system. A large share of WTW chains evaluated require changes in the energy source, new fuel production facilities, different fuel distribution systems and also modifications of the vehicles. An immediate transition to such a new system would be an unprecedented technological discontinuity. Historical examples of successful technological changes are characterized by stepwise transitions of subsystems. In this paper, we present a model that identifies likely sequences of stepwise transitions in analogy to the fitness landscape model in evolutionary biology. Applying this methodology allows for a dynamic interpretation of otherwise static WTW information. We show that sequences of transitions are path dependent, so that current decisions predetermine the future WTW system. We, therefore, argue that flexible initial transition steps that allow for different transition paths later on are favorable. Results suggest that improvements of vehicle technologies are most flexible if decision makers focus on decreasing WTW energy requirements. A full transition to diesel, as a first step, is advisable if WTW greenhouse gases should be reduced.
    Keywords: Alternative fuels, Hydrogen, Lock-in, Fitness-landscape
    JEL: B52 L92 O33 Q42
    Date: 2006–08
  5. By: Pirouz, Dante
    Abstract: While there is an extensive history of neuroscience, only recently has the theory and the methods of this discipline been applied to answer questions about decision making, choice, preference, risk and happiness. This new area of research, coined neuroeconomics, seeks to reveal more about the neural functioning and associated implications for economic and consumer behavior. In this paper are some of the key developments in neuroeconomics research as they relate to consumer decision-making, culminating with a discussion of possible future research areas in marketing where this type of research could be applied with important managerial, policy and academic implications.
    Keywords: Consumer behavior; neuroscience; neuroeconomics; decision-making; trust
    JEL: M31
    Date: 2004

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