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on Evolutionary Economics |
| By: | Obregon, Carlos |
| Abstract: | In social sciences there has been a long debate between the defenders of institutionalism and those of liberalism. The debate has centered around the relationship that exists between the individual (agent) and the social institutions (social structure). In general, liberalism defends that the individual ́s (agent ́s) preferences, choices, and behavior define the social institutions (social structure); while institutionalism argues that the social institutions define the individual ́s preferences, choices, and behavior. Some authors have attempted to solve the debate by proposing a dual feedback loop between the individual and the social institution, in which both mutually define each other. But the solution is not as simple as that. In this book, it is argued that liberalism is fully compatible with institutionalism, although only by following a pragmatic-scientific conception of both. It is ascertained that liberalism is an institution, that was born in a particular historical period of the Western societies. Therefore, since liberalism itself is an institution, it follows that liberalism is compatible with institutionalism. It is argued in here that although it is in general true that institutionalism defends that individual preferences, choices, and behaviors are defined by social institutions; once the society grants the individuals political and economic freedom, these individual preferences, choices, and behaviors become critical in defining the dynamics of the institutional arrangement in question – as liberalism has pointed out. |
| Keywords: | institutionalism, liberalism, individual, social institutions, social structure, preferences, choices, behavior, Western societies, society, political, politics, economic |
| JEL: | A10 A12 A13 A14 B00 B30 B31 G00 G01 G02 G20 G28 G29 H00 N00 P00 P20 P25 P26 P40 R00 |
| Date: | 2023–03–03 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122455 |
| By: | Carlos Alos Ferrer; Ernst Fehr; Michele Garagnani |
| Abstract: | Transitivity is perhaps the most fundamental axiom in economic models of choice. The empirical literature has regularly documented violations of transitivity, but these violations pose little problem if they are simply a result of somewhat-noisy decision making and not a reflection of the deterministic part of individuals’ preferences. However, what if transitivity violations reflect genuinely nontransitive preferences? And how can we separate nontransitive preferences from noise-generated transitivity violations–a problem that so far appears unresolved? To tackle these fundamental questions, we develop a theoretical framework which allows for nontransitive choices and behavioral noise. We then derive a non-parametric method which uses response times and choice frequencies to distinguish genuine (and potentially nontransitive) preferences from noise. We apply this method to two different datasets, demonstrating that a substantial proportion of transitivity violations reflect genuinely nontransitive preferences. These violations cannot be accounted for by any model using transitive preferences and noisy choices. |
| Keywords: | Transitivity, Stochastic choice, Preference Revelation |
| JEL: | D01 D81 D87 D91 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:lan:wpaper:413755644 |
| By: | Stark, Oded; Balbus, Lukasz |
| Keywords: | Institutional and Behavioral Economics, Risk and Uncertainty |
| Date: | 2024–11–14 |
| URL: | https://d.repec.org/n?u=RePEc:ags:ubzefd:348016 |
| By: | Villalba, Maria Luisa; Spinola, Danilo; Ruiz, Walter |
| Abstract: | This article explores the coevolutionary dynamics of immature innovation systems (IMIS), focusing on the role of marginalized agents often excluded from Conventional Innovation Systems (CIS). Marginalized agents, such as informal entrepreneurs or low-resource communities, are key actors in addressing local challenges but are typically overlooked in mainstream innovation processes, making it crucial to understand how they can be integrated into broader systems. Using an Agent-Based Model (ABM) based on Villalba (2023) and Ruiz et al. (2016), we examine how interactions between agents with different innovation and inclusion capabilities drive system evolution. The model integrates learning and unlearning processes, allowing agents to adapt and build capabilities over time. Through simulations that vary social thresholds, agent configurations, NOPI (Needs, Opportunities, Problems and Ideas) complexity, and the presence or absence of learning, we find that while higher social thresholds and complex NOPIs foster agent specialization, they can limit the inclusion of marginalized agents. Conversely, the absence of learning results in system stagnation despite increased short-term inclusion. By adopting a system-wide perspective, this paper contributes to the literature on innovation systems by analyzing how the relationships between marginalized and conventional actors influence inclusion dynamics. Our ABM captures the complex interplay of inclusion, coevolution, and capability complementarity within IMIS, offering deeper insights into how marginalized agents drive inclusive innovation and emphasizing the importance of fostering both innovation and inclusion capabilities for sustainable, equitable outcomes. |
| Keywords: | Coevolution; Heterogeneous agents; Immature innovation system; Developing countries; Excluded agents |
| Date: | 2024–11–08 |
| URL: | https://d.repec.org/n?u=RePEc:akf:cafewp:31 |
| By: | Ruben Enikolopov; Maria Petrova; Gianluca Russo; David Yanagizawa-Drott |
| Abstract: | We examine the long-run effect of homophily in online social networks on interpersonal interactions in local communities. We measure online homophily across counties in the US using Facebook data. For identification, we exploit a conflict between Facebook and Google over data sharing of user information during the early expansion phase of Facebook. We find evidence that homophilic connections led to increased social media usage but reduced offline socialization. This shift was accompanied by deterioration of local social cohesion, as individuals became less connected across income strata and less likely to share the same political opinions with others in their counties. |
| Keywords: | social media, networks, homophily, social capital |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11375 |