Adjustment costs and indeterminacy in perfect foresight models

Article Abstract:

Indeterminacy of equilibrium in perfect foresight models is proposed to be resolved by a general method which could also be used by a number of existing models. Quadratic adjustment costs are included in models with multiple equilibria. The limiting behavior of the resulting solutions is examined as adjustment costs approach zero. It was found that the limiting behavior concided with particular equilibria of the original models. The method could be used in the selection among feasible equilibria in examples with local indeterminacy. It can also preserve determinate equilibria.

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Quality signals in information cascades and the dynamics of the distribvution of motion picture box office revenues

Article Abstract:

An agent-based information cascade model accurately represents box office revenues over time. It does not accurately represent reportig problems or word-of-mouth quality reporting.

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Learning to speculate: experiments with artificial and real agents

Article Abstract:

The authors test the artificial agent-based model by looking at Kiyotaki and Wright's model on money and find that the model can be useful.

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