Coordination through social learning in a general equilibrium model
Idioma
EN
Article de revue
Este ítem está publicado en
Journal of Economic Behavior and Organization. 2017-09-01, vol. 141, p. 64-82
Resumen en inglés
This paper analyses coordination through social learning in a general equilibrium model. We use a fully decentralized economy, in which households and firms exchange labour and consumption goods in the corresponding markets ...Leer más >
This paper analyses coordination through social learning in a general equilibrium model. We use a fully decentralized economy, in which households and firms exchange labour and consumption goods in the corresponding markets with potential rationing. Their strategies are updated through an evolutionary learning process based on imitation and random experimenting. This learning process induces substantial coordination failures, especially between firms, which lead almost systematically to below equilibrium output levels and social welfare losses. The main underlying mechanism is a self-reinforcing uneven distribution of households’ income, which results in a lack of aggregate demand.< Leer menos
Palabras clave en inglés
Evolutionary learning
General equilibrium
Heterogeneous agents
Income distribution
Centros de investigación