166 research outputs found

    Boundary and interior equilibria: what drives convergence in a ‘beauty contest'?

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    We present an experimental game in the p-beauty framework. Building on the definitions of boundary and interior equilibria, we distinguish between ‘speed of convergence towards the game-theoretic equilibrium' and ‘deviations of the guesses from the game-theoretic equilibrium'. In contrast to earlier findings (GĂƒÂŒth et al., 2002), we show that (i) interior equilibria initially produce smaller deviation of the guesses from the game-theoretic equilibrium compared to boundary equilibria; (ii) interior and boundary equilibria do not differ in the timeframe needed for convergence; (iii) the speed of convergence is higher in the boundary equilibrium.Guessing game, p-beauty contest, individual behaviour

    Guessing Games and People Behaviours: What Can we Learn?

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    In this paper we address the topic of guessing games. By developing a generalised theory of naĂŻvetĂ©, we show how GĂŒth et al..s result (i.e. convergence toward interior equilibria is faster than convergence toward boundary equilibria) is compatible with Nagel.s theory of boundedly rational behaviour. However, we also show how, under new model parameterisation, neither GĂŒth et al..s story of convergence towards interior equilibria, nor Nagel.s theory of boundedly rational behaviour are verified. We conclude that the results of Nagel (1995) and GĂŒth et al. (2002), however interesting, are severely affected by the ad hoc parameterisation chosen for the game.game, p-beauty contest, individual behaviour

    The Two Faces of Knowledge Diffusion: the Chilean Case

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    This paper analyses the dynamics of return to knowledge where knowledge is acquired through the combination of interactive and individual learning. We suggest that in light of this new definition of knowledge, choosing the optimal level of education is no longer an individual exercise of present and future utility maximisation as suggested by more formal human capital theory (Becker, 1964). In fact, other external (environmental) variables might affect the individual decision of investment. We calculate the effect of individual and interactive learning in determining the wage of Chilean workers aged between 14 and 65.Chile, Inequality, Latin America, Knowledge, Schooling returns

    Eliciting environmental preferences of Ghanaians in the laboratory: An incentive-compatible experiment

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    In this paper we aim to look into the attributes of Ghanaians’ willingness-to-pay for green products. This would help us to assess whether Ghanaians show a preference towards environmental goods. The methodology employed to address these issues is an ‘experimentally-adapted’ CV survey which involves laboratory experiment conducted among Ghanaian University students. Notwithstanding the limitations arising from the sample used in our experiment (most notably University students do not represent, economically wise, the entire Ghanaian population), we believe that our investigation provides a first answer to such question as Ghanaians consistently show that they are willing to pay an extra premium for green products.contingent valuation, experiment, incentive-compatible, Ghana, organic products, willingness to pay

    Investigating Discretionary Environmental Enforcement: a pilot experiment

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    In this work, we conducted a laboratory experiment in order to test the findings of a theoretical environmental enforcement model played as a strategic game where the firm’s behavior is influenced by the course of actions discretionally undertaken by both the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Justice (DOJ). Our experimental findings suggest that the presence of the DOJ can be counterproductive in increasing social welfare, since it implies solely additional enforcement costs, which, in turn, might reduce the probability of conducting inspections by the EPA without affecting the probability of firm’s compliance.classroom experiments, environmental enforcement, environmental economics


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    This paper aims to understand some of the mechanisms which dominate the phenomenon of knowledge diffusion in the process that is called ‘interactive learning’. We examine how knowledge spreads in a network in which agents interact by word of mouth. We define a social network structured as a graph consisting of agents (vertices) and connections (edges) and situated on a wrapped grid forming a torus. The target of this simulation is to test whether knowledge diffuses homogeneously or whether it follows some biased path, and its relation with the network architecture. We also investigate the impact of a modelled ICT platform on the knowledge diffusion process.Agent-based Knowledge Network Small world

    A Laboratory Experiment of Knowledge Diffusion Dynamics

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    This paper aims to study, by means of a laboratory experiment and a simulation model, some of the mechanisms which dominate the phenomenon of knowledge diffusion in the process that is called ‘interactive learning’. We examine how knowledge spreads in different networks in which agents interact by word of mouth. We define a regular network, a randomly generated network and a small world network structured as graphs consisting of agents (vertices) and connections (edges), situated on a wrapped grid forming a lattice. The target of the paper is to identify the key factors which affect the speed and the distribution of knowledge diffusion. We will show how these factors can be classified as follow: (1) learning strategies adopted by heterogeneous agents; (2) network architecture within which the interaction takes place; (3) geographical distribution of agents and their relative initial levels of knowledge. We shall also attempt to single out the relative effect of each of the above factors.Knowledge, Network, Small world, Experiment, Simulation.

    What Makes Small and Medium Enterprises Competitive

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    : This paper aims at understanding the determinants of Italian small- and medium-sized enterprises competitiveness. Having in mind the fact that the Italian economic system relies substantially on small firms which have managed to stay competitive by adopting strategies such as the creation of well-integrated social and institutional clusters (the so-called industrial districts) or specialising in the production of quality goods (the so called made in Italy). However, the growing competing pressure coming from the Far East has rendered this production system vulnerable, challenging its internationally competitiveness. By developing a conceptual model we identify the sources of competitiveness of Italian SMEs. The model is tested using a unique database which collects data, for the year 2004, over a sample of 2,600 SMEs.SMEs, competitiveness, innovation, interval regression, ordered probit

    Knowledge Diffusion and Innovation: Modelling Complex Entrepreneurial Behaviours by Piergiuseppe Morone and Richard Taylor: A Response to the Review

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    In this brief note we reply to Cïżœsar Garcïżœa-Dïżœaz and Diemo Urbig who reviewed our book on Knowledge Diffusion and Innovation (Edward Elgar Publishing: Cheltenham, 2010). We take this opportunity to reaffirm our personal view on several relevant issues, such as the need for a holistic view in economics, the adoption of a pragmatic heuristic approach when dealing with complex socio-economic systems, the relevance of a \'prototype model\' to setting a rigorous conceptual framework and the proposition of a novel way of looking at knowledge and innovation.Knowledge Diffusion, Innovation, Agent-Based Model, Validation