This paper proposes an addition to the firm-based perspective on intra-industry profitability differentials by modelling a business organisation as a complex adaptive system. The presented agent-based model introduces an endogenous similarity-based social network and employees’ reactions to...

The economic geography literature distinguishes between two types of reasons for economic agglomeration. Regional concentration of economic activity can be attributed to 'first nature' meaning geographic advantages and disadvantages given by nature or to 'second nature' meaning agglomeration...

Chapter 1: Introduction -- Chapter 2: Importance of Climate Change in Economics -- Chapter 3: Mainstream Climate Economics -- Chapter 4: What is Problematic about Mainstream Climate Economics? -- Chapter 5: Why We Do Not Have More Pluralism -- Chapter 6: Climate Change and Responsibility --...

Understanding a Complex World -- What is Complexity? -- Measurement of Complexity -- Complexity Economics -- The Economy as a Complex Adaptive System -- Nonlinearity -- Feedback, Circular Causality, and System Dynamics -- Self-Organization -- Emergence, Levels, and Hierarchy -- Economic...

Game theory predicts that players make strategic commitments that may appear counter-intuitive. We conducted an experiment to see if people make a counter-intuitive but strategically optimal decision to avoid information. The experiment is based on a sequential Nash demand game in which a...

Using a market potential function, we examine the spatial correlation of wages and consumer purchasing power across regions in West Germany. The market potential function can be regarded as a reduced form of several new economic geography models. Thus, the estimation results provide some first...

International and regional integration are accompanied by the fear that the reduction of trade barriers might change the spatial distribution of economic activity radically. In the past decade, the 'New Economic Geography' has developed as a theory explaining some of the forces which might...

This paper presents a regional economic model in which increasing returns to scale in the production of non-traded consumer services cause the agglomeration of high-skilled workers in one region. The residential choice of high-skilled individuals exerts a pecuniary externality on immobile...