We propose a distributed randomized policy iteration algorithm for infinite horizon dynamic programming problems for which the control at each stage is m-dimensional. The traditional policy iteration algorithm involves performing a minimization over an m-dimensional constraint set and has a...

This paper examines the behavior of adaptive agents in a stochastic dynamic version of the Hotelling's location model. We conduct an innovative agent-based simulation under the Hotelling's setting with two agents who use the Nash Q-learning mechanism for adaptation. This allows us to explore...

We propose a distributed randomized policy iteration algorithm for infinite horizon dynamic programming problems for which the control at each stage is m-dimensional. The traditional policy iteration algorithm involves performing a minimization over an m-dimensional constraint set and has a...

Recent literature shows that learning in oligopoly games might in the long run result in the Cournot or in the Walras equilibrium. Which outcome is achieved seems to depend on the underlying learning dynamics. This paper analyzes the forces behind the learning mechanisms determining the long run...

Computer automation has the potential, just starting to be realized, of transforming the design and operation of markets, and the behaviors of agents trading in them. We discuss the possibilities for automating markets, presenting a broad conceptual framework covering resource allocation as well...

Behavioural economics highlights the role of social preferences in economic decisions. Further, populations are heterogeneous, suggesting that the composition of social preference types within a group may impact the ability to sustain voluntary public goods contributions. We conduct agent-based...

Using virtual stock markets with artificial interacting software investors, aka agent-based models (ABMs), we present a method to reverse engineer real-world financial time series. We model financial markets as made of a large number of interacting boundedly rational agents. By optimizing the...

The phenomenon of infrequent price changes has troubled economists for decades. Intuitively one feels that for most price-setters there exists a range of inaction, i.e. a substantial measure of the states of the world, within which they do not wish to modify prevailing prices. However, basic...

Theoretical models have had difficulties to account, at the same time, for the most important stylized facts observed in experiments of the Voluntary Contribution Mechanism. A recent approach tackling that gap is Arifovic and Ledyard (2012), which implements social preferences in tandem with an...

Over the past two decades, financial market crises with similar features have occurred in different regions of the world. Unstable cross-market linkages during a crisis are referred to as financial contagion. We simulate crisis transmission in the context of a model of market participants...