Abstract
This is a study of emergent economic order — order that is the result of human action but not human design. A coordination game is studied in which locally connected agents act without deliberation. Their locally optimal actions propagate through neighbors to others, and coalitions form adaptively. The game is mapped onto a hypercube and a connectionist model is developed. Simulation results show that the process is self-organizing and evolves to optimal or near-optimal equilibria; the agent network computes the core of the game. Its equilibria are path-dependent and the dynamic may become trapped on local optima; broken symmetry and noise promote evolution to global optima.
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de Vany, A. (1996). The Emergence and Evolution of Self-Organized Coalitions. In: Gilli, M. (eds) Computational Economic Systems. Advances in Computational Economics, vol 5. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-8743-3_2
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DOI: https://doi.org/10.1007/978-94-015-8743-3_2
Publisher Name: Springer, Dordrecht
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