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Learning to trade and mediate

Dawid, Herbert (1997) Learning to trade and mediate. Report Series SFB "Adaptive Information Systems and Modelling in Economics and Management Science", 20. SFB Adaptive Information Systems and Modelling in Economics and Management Science, WU Vienna University of Economics and Business, Vienna.

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In this paper we study the behavior of boundedly rational agents in a two good economy where trading is costly with respect to time. All individuals have a fixed time budget and may spend time for the production of good one, the production of good two and trading. They update their strategies, which determine their time allocation, according to a simple imitation type learning rule with noise. In a setup with two different type of agents with different production technologies we show by the means of simulations that both direct trade and trade via mediators who specialize in trading can emerge. We can also observe the transition from a pure production economy via direct trade to an economy with mediated trade. (author's abstract)

Item Type: Paper
Keywords: bounded rationality / learning / trade / mediation
Classification Codes: JEL D83, F10
Divisions: Departments > Finance, Accounting and Statistics > Statistics and Mathematics
Departments > Informationsverarbeitung u Prozessmanag. > Informationswirtschaft
Departments > Informationsverarbeitung u Prozessmanag. > Produktionsmanagement > Taudes
Departments > Marketing > Service Marketing und Tourismus
Depositing User: Repository Administrator
Date Deposited: 07 Mar 2002 17:38
Last Modified: 27 Oct 2014 10:05
URI: http://epub.wu.ac.at/id/eprint/952


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