In order to address the question whether Hayek might have been an Agent-based Computational Economist (ACE) avant-la-lettre, we consider an ACE model concerning the phenomenon of information contagion. Alongside increasing returns, network externalities, and information cascades, information...

This paper develops a model of pricing and advertising in a matching environment with capacity constrained sellers. Sellers' expenditure on directly informative advertising attracts consumers only probabilistically. Consumers who happen to observe advertisements randomize over the advertised...

Economic behavior strives for efficiency. Therefore, also evolving network structures should be a result of such a goal-oriented behavior. Traditionally, networks were assumed to be only temporary phenomena, since the prevailing organizational forms that comply with the efficiency postulate are...

Portuguese Abstract: Exploramos vários jogos diferenciais para simular a competição entre duas firmas em Preço, Publicidade, e Preço e Publicidade simultâneamente. Os resultados reforçam conclusões importantes na literatura e complementam-na, permitindo analisar a competição em dois...

In this brief comment, the public choice theory aims to distinguish the dilemmas and conflicts in formal and empirical. The hypothesis argues that the reality more complex than the principles of choice of Pareto and Liberalism. Both the ethics and politics are taking decisions that are not...

Firms design quality-price pairs to satisfy heterogeneous consumers. Apart from the core product attributes consumers gain utility through other marketing mix variables such as advertising that is affective and evokes positive feelings. An interesting question is whether a firm should use such...

More than fifty years ago Ronald Coase published ‘The Problem of Social Cost’. In his paper, Professor Coase presents an intriguing idea that has since become known among economists and lawyers as the ‘Coase Theorem’. Unlike most modern forms of economic analysis, however, Coase’s...

While mainstream economics assumes that firms are always on the production frontier, there is an evolutionary interpretation of competition according to which firms have different degrees of what Leibenstein (1964) called quot;X-efficiency,quot; and competition selects for higher X-efficiency....

In this paper, we explore the economics of free under perpetual licensing. In particular, we focus on two emerging software business models that involve a free component: feature-limited freemium (FLF) and uniform seeding (S). Under FLF, the firm offers the basic software version for free, while...

The emergence of transaction cost economics (TCE) in the early 1970s with Oliver Williamson’s successful reconciliation of the socalled neoclassical approach with Herbert Simon’s organizational theory can be considered an important part of the first cognitive turn in economics. The...