A Baseline Model of Industry Evolution

The paper analyses some general dynamic properties of industries characterized by heterogeneous firms and continuing stochastic entry. After a brief critical assessment of some significant drawbacks of recent contributions to modeling of stochastic industrial dynamics, we propose a novel analytical apparatus able to derive some generic properties of the underlying competition process combining persistent technological heterogeneity, differential growth of individual firms and turnover. The basic model, we suggest, is indeed applicable with proper modifications to a large class of evolutionary processes, well beyond industrial dynamics.Evolution, Competition, Stochastic entry, Industrial dynamics, Evolutionary games

Modeling a Decentralized Asset Market: An Introduction the Financial "Toy Room"

In this paper, the authors describe a micro-founded simulation environment for decentralized trade in a financial asset. Within the philosophy of computer-simulated "artificial markets", this environment allows one to experiment in a modular fashion with (i) individual characterizations in terms of behaviors and learning, (ii) different architectural and institutional traits of the market, and (iii) time-embedding of events at the system and the individual level

The Method of Generalized Urn Scheme in the Analysis of Technological and Economic Systems

Adaptive (path dependent) processes of growth modeled by urn schemes are important for several fields of applications: biology, physics, chemistry, economics. In this paper we present a review of studies that have been done in the technological dynamics by means of the urn schemes. Also several new macroeconomic models of technological dynamics are analysed by the same machinery and its new modification allowing to tackle non-homogeneity of the face space. We demonstrate the phenomena of multiple equilibria, different convergence rates for different limit patterns, locally positive and locally negative feedbacks, limit behavior associated with non-homogeneity of economic environment where producers (firms) are operating

Introduction: Chris Freeman's "History, Co-Evolution and Economic Growth": An affectionate reappraisal

We maintain that Chris Freeman's approach to the study of the interplay between technical change and economic growth is still a very fertile source of insights. Alas, in much of mainstream research Freeman's contribution is hardly considered. We show that this is a result of the basic assumptions of neoclassical growth theory (both "old"and "new") that prevent a pregnant treatment of technical and institutional change. We conclude that if we want to make real progress with understanding the longrun dynamics of capitalist systems, Freeman's "reasoned history"is an invaluable starting point