A General Framework for Dynamic Economic Systems
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In the following discussion, a general framework that encompasses a large class of economic models will be formulated. The term “adaptive” is used to accentuate the characteristic dynamic aspect of these models — the continual reaction of an economic agent (or set of agents) to the changing information received from the environment, and the consequent adaptation of behavior to the state of the environment as it is perceived. Behavior may be a solution to a mathematical program, or it may be the result of some behavioral policy or “rule of thumb”. Thus temporary equilibrium, sequential search, learning, and even behavioral ist models of economic behavior may be structured in the form about to be given .
KeywordsTime Path Cobweb Model Demand Correspondence Behavioral Selection Explicit Optimization
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