This paper demonstrates the utility of systems and control theory in the analysis of economic systems. Two applications demonstrate how the analysis of simple dynamic models sheds light on important practical problems. The first problem considers the design of a retail laboratory, where the...

The application of rational choice to non-market decision making has revolutionizedcomparative economics. A fruitful methodological symmetry now prevails in theanalysis of economic systems, emphasizing how their underlying institutions affectindividual incentives. Most importantly, comparative...

Theoretical reasoning disagrees about what type of bargaining system performs best. We have tested the explanatory power of three competing hypotheses: neoliberalism, coporatism and the hump-shape hypothesis. All of these hypotheses lack empirical support due to two main shortcomings. First,...