TY - UNPB
T1 - Learning to trade and mediate
AU - Dawid, Herbert
PY - 1997
Y1 - 1997
N2 - 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.
AB - 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.
U2 - 10.57938/01097d55-0aee-4943-a7e1-2017a36d2aa8
DO - 10.57938/01097d55-0aee-4943-a7e1-2017a36d2aa8
M3 - WU Working Paper and Case
T3 - Report Series SFB "Adaptive Information Systems and Modelling in Economics and Management Science"
BT - Learning to trade and mediate
CY - Vienna
ER -