Barde, Sylvain (2014) Back to the Future: Economic Self-Organisation and Maximum Entropy Prediction. Computational Economics, 45 (2). pp. 337-358. ISSN 0927-7099. E-ISSN 1572-9974. (doi:10.1007/s10614-014-9422-2) (KAR id:41872)
PDF
Author's Accepted Manuscript
Language: English |
|
Download this file (PDF/586kB) |
Preview |
Request a format suitable for use with assistive technology e.g. a screenreader | |
Official URL: http://dx.doi.org/10.1007/s10614-014-9422-2 |
Abstract
This paper shows that signal restoration methodology is appropriate for
predicting the equilibrium state of certain economic systems. A formal justification
for this is provided by proving the existence of finite improvement paths in object allocation
problems under weak assumptions on preferences, linking any initial condition
to a Nash equilibrium. Because a finite improvement path is made up of a sequence
of systematic best-responses, backwards movement from the equilibrium back to the
initial condition can be treated like the realisation of a noise process. This underpins
the use of signal restoration to predict the equilibrium from the initial condition, and an
illustration is provided through an application of maximum entropy signal restoration
to the Schelling model of segregation.
Item Type: | Article |
---|---|
DOI/Identification number: | 10.1007/s10614-014-9422-2 |
Uncontrolled keywords: | Information entropy; Self-organisation; Potential function; Schelling segregation |
Subjects: |
H Social Sciences > HB Economic Theory Q Science > Operations Research - Theory |
Divisions: | Divisions > Division of Human and Social Sciences > School of Economics |
Depositing User: | Sylvain Barde |
Date Deposited: | 16 Jul 2014 16:21 UTC |
Last Modified: | 05 Nov 2024 10:26 UTC |
Resource URI: | https://kar.kent.ac.uk/id/eprint/41872 (The current URI for this page, for reference purposes) |
- Link to SensusAccess
- Export to:
- RefWorks
- EPrints3 XML
- BibTeX
- CSV
- Depositors only (login required):