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- W1520851720 abstract "In this paper we explore the effect of bounded rationality on the convergence of individual behavior toward equilibrium. In the context of a Cournot game with a unique and symmetric Nash equilibrium, firms are modeled as adaptive economic agents through a genetic algorithm. Computational experiments show that (1) there is remarkable heterogeneity across identical but boundedly rational agents; (2) such individual heterogeneity is not simply a consequence of the random elements contained in the genetic algorithm; (3) the more rational agents are in terms of memory abilities and pre-play evaluation of strategies, the less heterogeneous they are in their actions. At the limit case of full rationality, the outcome converges to the standard result of uniform individual behavior." @default.
- W1520851720 created "2016-06-24" @default.
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- W1520851720 date "2003-03-29" @default.
- W1520851720 modified "2023-09-27" @default.
- W1520851720 title "Does bounded rationality lead to individual heterogeneity? The impact of the experimentation process and of memory constraints" @default.
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