The purpose of this note is to investigate how aggregation of households affects the variation of the index of heterogeneity as recently defined in Hildenbrand and Kneip (1999). We show the degree of heterogeneity of an entire population is at least as high as the smallest degree of...

Both theoretical work on knowledge spillovers and regional policy initiatives often assume that there exists a general and unanimous advantage for firms to cluster. But opposed to the benefit is the disadvantage of sharing knowledge with other (rival) firms. This paper highlights the "downside"...

We examine an evolutionary model of equilibrium selection, where all individuals interact w ith each other, recurrently playing a strictly supermodular game. Individuals play (myopic)\best responses to the current population profile, occasionally they pick an arbitrary strategy at random. To...

Investigating the strategic advantage of negatively interdependent preferences in action monotonic games, we derive characterizing conditions both for general action monotonic games and for the subclass of action monotonic games with spillovers. Examples demonstrate the generality of our...

The paper initiates a new area of research: both concepts of hysteresis and pricing-to-market are simultaneously investigated in relation to German exports into Belgium, France, Italy, UK, Spain and Sweden over the period 1975 to 1994 at 4-digit ISIC level. There is abundant empirical evidence...

The implications of evolutionarily stable behavior in finite populations have recently been explored for a variety of aggregative games. This note proves an intimate relationship between submodularity and global evolutionary stability of strategies for these games, which -apart from being of...

It is argued in this paper that the solution concept of an evolutionary stable strategy (ESS) is an adequate analysis tool for contest theory. Moreover, it is shown that in a contest ESS always differs from Nash equilibrium, the hitherto dominant solution concept in contest theory. Finally, an...

The paper re-examines the validity of the hysteresis hypothesis by applying it to the UK import volume from the world's five largest economies: Germany, France, Italy, Japan and the USA, over the period 1975 to 1994. Disaggregated bilateral data (4- digit ISIC) are used and hysteresis is...

This paper surveys recent approaches to the explanation of how the shape of mean demand is determined. The main focus is to address the following questions: Is it necessary to impose specific behavior of the households in order to achieve regularities of mean demand or is it sufficient to know...

I show that aggregate-taking behavior is often evolutionarily stable for finite populations in symmetric games in which payoff depends only on own strategy and an aggregate. I provide economic examples exhibiting this phenomenon.