Johann Mitlöhner
Abstract
Human economic decisions are characterized by a number of factors which make them difficult to model with standard mathematical tools. Decisions can be more easily described by a set of rules, and some of them may be "rules of thumb". Economic behavior is adaptive, in that people are able to adjust to a changing environment. It is argued in this paper that the classifier system framework is a suitable means of modeling human economic decisions. A case of a simple economic decision of finding an optimal price is discussed, which is later made more complex by introducing an input variable that effects the optimal price. It is shown that classifier systems can be used in both tasks, and their performance is compared to human decisions in the same set of circumstances.
- Geyer-Schulz95 Andreas Geyer-Schulz. Holland classifier systems. APL Quote Quad, 25(4), June 1995. APL'95 Conference Proceedings. Google Scholar
Digital Library
- Brooks86a Rodney A. Brooks. A robust layered control system for a mobile robot. IEEE J. Robotics and Automation, RA-2:14--23, April 1986.Google ScholarCross Ref
- Curtis/Nichols93 Pavel Curtis and David A. Nichols. Muds grow up: Social virtual reality in the real world. Published on the Internet as file "MUDsGrowUp.txt", available e.g. at hi:tiP." iI~.wu-wien.ac.at/usrlailmitloelan, January 1993.Google Scholar
- Grimm/Mitlöhner95a T. Grimm and J. Mitl6hner. Bounded rationality and adaptive agents in economic modeling. APL Quote Quad, 25(4), June 1995. Google ScholarDigital Library
- Grimm95 Thomas Grimm and Johann Mitltihner. Bounded rationality and adaptive agents in economic modeling. APL Quote Quad }, 25(4), June 1995. APL'95 Conference Proceedings. Google ScholarDigital Library
- Holland92 John H. Holland. Adaptation in Natural and Artificial Systems. MIT Press, Cambridge, Massachusetts, 1992. Google ScholarDigital Library
- Holland95 John H. Holland. Hidden Order. Addison-Wesley, Reading, Massachusetts, 1995.Google Scholar
- Kagel/Roth95 John H. Kagel and Alvin E. Roth. The Handbook of Experimental Economics. Princeton University Press, Princeton, New Jersey, 1995Google Scholar
- Langton89a Christopher G. Langton, editor. Artificial Life. Santa Fe Institute, Addison-Wesley, 1989. Google ScholarDigital Library
- Meyer/Wilson Jean-Arcady Meyer and Stewart W. Wilson, editors. From Animals to Animats - Proceedings of the First International Conference on Simulation of Adaptive Behavior. MIT Press, Cambridge, Massachusetts, 1991.Google Scholar
- Steels95 Luc Steels, editor. The artificial life route to artificial intelligence : building embodied, situated agents. Erlbaum, Hillsdale, 1995. Google ScholarDigital Library
- Sterman89a John D. Sterman. Modeling managerial behavior: misperceptions of feedback in a dynamic decision making environment. Management Science, 35(3), March 1989 Google ScholarDigital Library
Index Terms
- Classifier systems and economic modeling
Recommendations
Classifier systems and economic modeling
APL '96: Proceedings of the conference on Designing the futureHuman economic decisions are characterized by a number of factors which make them difficult to model with standard mathematical tools. Decisions can be more easily described by a set of rules, and some of them may be "rules of thumb". Economic behavior ...
On Modeling Economic Default Time: A Reduced-Form Model Approach
In the aftermath of the global financial crisis, much attention has been paid to investigating the appropriateness of the current practice of default risk modeling in banking, finance and insurance industries. A recent empirical study by Guo et al. (Rev ...
Comments