I replace the assumption of individual optimization, common in economic literature, by an assumption that an individual executes a computational algorithm directed at finding the choice that is good at the time the choice is made. The general properties of such algorithm are studied

In this paper, I consider a problem of multi-dimensional screening in the case when the number of consumer's characteristics, , differs from , the number of goods produced by a monopolist. I show that, in the case when , the qualitative features of solution are similar to those obtained by...

In this paper I consider the effects of migration on the spread and speed of the propagation of new conventions, technologies, etc. I show that the speed of the propagation increases with the openness of the economy. The application of the model to the equilibrium selection in 2 × 2...

The paper developes the model of optimal monopoly pricing under the viscous demand and customers turnover. The main findings are that the monopoly prices high during a fad, fads, however, are short lived

In this paper I consider a class of a gradual adjustment rules. I discuss conditions under which such a rule can be considered as an attempt to maximize a utility function. I also demonstrate that the optimal adjustment rule does not exists, i. e. no adjustment rule allows to arrive at the...

This paper develops a theoretical framework for analyzing incentive schemes under bounded rationality. It starts from a standard principal-agent model and then superimposes an assumption of boundedly rational behavior on the part of the agent. Boundedly rational behavior is modeled as an...