In this paper, we construct a general model of diverse problem solvers of limited abilities. We use this model to derive two main results: (1) a collection of diverse, bounded problem solvers can locate optimal solutions to difficult problems and (2) a collection of problem solvers of diverse...

A model in which heterogeneous agents form firms is described and empirically tested. Each agent has preferences for both income and leisure and provides a variable input ('effort') to production. There are increasing returns to cooperation, and agents self-organize into productive teams. Within...

We present a model of opinion dynamics in which agents adjust continuous opinions as a result of random binary encoun ters whenever their difference in opinion is below a given threshold. High thresholds yield convergence of opinions towards an average opinion, whereas low thresholds result in...

The paper describes the application of Genetic Algorithms to a Resource Economics problem; the decision about the intensity of exploitation of a renewable resource. Genetic Algorithms, developed by HOLLAND (1975), are a model of biological evolution, that captures some important features of...

In the present paper I introduce the revelation principle of bounded rationality. The principle states that any behavior that a model of bounded rationality exhibits can be implemented as the choice of an agent with preferences and beliefs consistent with Savage-Bayesian rationality. The...

We propose a method for modelling economic systems in which outcomes depend locally on the predictions that agents make of other agents. We develop populations games in which each agent adaptively searches for a good model of its environment. We demonstrate that such systems can exhibit...