In this paper, we study out-of-equilibrium dynamics with decentralized exchange (bilateral bargaining between randomly matched pairs of agents). We characterise the conditions under which out-of-equilibrium trading convergences to efficient allocations even when agents are myopic and have limited information. We show, numerically, that the rate of convergence to efficient allocations is exponen...

We propose numerical algorithms for solving first price auction problems where bidders draw independent valuations from heterogeneous distributions. The heterogeneity analyzed in this work is what might naturally emerge when subsets of distributionally homogeneous bidders collude. Bid functions and expected revenues are calculated for two special cases. Extensions to more general asymmetric fir...

A two-phase field experiment on the effect of N application was studied on growth, yield and quality of seed cane of sugarcane variety, B41/227 at Finchaa Sugarcane Plantation during 2000/2001 and 2002/2003 cropping years. Thirty two treatments comprised of four N levels – 0, 46, 92 and 138kg/ha, and applied at 2 1 /2, 5 and 7 1 /2 months after planting in whole and split applications were used...

In addition to the common analysis of the Kauffman NK model where the value of K and the structure of interaction is given, the aim of this paper is to study what would be the values of these two parameters if they were endogenized. Thus, a model is proposed where firms and business schools coordinate to search for high peaks in their respective landscapes using evolutionary algorithms. The mai...

In this paper we study approximating the total loss associated with the individual insurance risk model by a compound Poisson random variable. By minimizing the expectation of the absolute deviation of the compound Poisson random variable from the true total loss, we investigate not only the optimal compound Poisson random variable but also the numerical calculation of the approximation error. ...

We investigate the computational complexity of several decision problems in hedonic coalition formation games and demonstrate that attaining stability in such games remains NP-hard even when they are additive. Precisely, we prove that when either core stability or strict core stability is under consideration, the existence problem of a stable coalition structure is NP-hard in the strong sense. ...

We develop a stochastic frontier model with unknown locations and number of structural breaks for both efficiency and technology. The structural changes in technology and efficiency are different. It is possible to identify these two types of changes even under a short panel context. The algorithm to estimate the model is designed to avoid the potential pitfalls with panel data. Parallel comput...

This paper is aimed at investigating the effects of government intervention through unemployment benefits on macroeconomic dynamics in an agent based decentralized matching framework. The major result is that the presence of such a public intervention in the economy stabilizes the aggregate demand and the financial conditions of the system at the cost of a modest increase of both the inflation ...

We propose a model with heterogeneous interacting traders which can explain some of the stylized facts of stock market returns. In the model, synchronization effects, which generate large fluctuations in returns, can arise purely from communication and imitation among traders. The key element in the model is the introduction of a trade friction which, by responding to price movements, creates a...

We apply the idea of evolution to a spatial model. Prisoners’ dilemmas or coordination games are played repeatedly within neighbourhoods where players do not optimise but instead copy successful strategies. Discriminative behaviour of players is introduced representing strategies as small automata, which can be in different states against different neighbours. Extensive simulations show that co...