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

Local and divergent patterns of technological learning within (partly) globalized markets : is there anything new? and what can policies do about it? : a concise guide

In this work, we present an assessment of the nature and impact of current ``globalizing'' tendencies at various levels of observation. The evidence in this respect suggests that it has mostly concerned financial flows (especially short-term ones); to some extent trade flows; and only to very limited degrees, if any, the modes of access to new (and even 'old') technologies. A widely held prejudice is that 'globalization' goes hand in hand with international convergence in technological capabilities and incomes: in quite a few cases the opposite indeed holds. Conversely, such evidence powerfully hints at the continuing role of public policies in fostering the accumulation of technological knowledge and its economic exploitation. We suggest some taxonomies of the 'control' and 'state' variables which policies are likely to influence. Beyond the fading away wave of 'market fundamentalism' -we suggest- it is high time to pragmatically re-assess the role of markets as often powerful, but highly imperfect, mechanisms of decentralized search for and adaptation to technological and organizational novelties