New leads in speculative behavior

A. Kindler; S. Bourgeois-Gironde; G. Lefebvre; S. Solomon

doi:10.1016/j.physa.2016.10.028

New leads in speculative behavior

A. Kindler, S. Bourgeois-Gironde, G. Lefebvre, S. Solomon

Racah Institute of Physics

The Hebrew University of Jerusalem

Research output: Contribution to journal › Article › peer-review

Abstract

The Kiyotaki and Wright (1989) (henceforth KW) model of money emergence as a medium of exchange has been studied from various perspectives in recent papers. In the present work we propose a minimalistic model for the behavior of agents in the KW framework, which may either reproduce the theoretical predictions of Kiyotaki and Wright (1989) on the emerging Nash equilibria, or (less closely) the empirical results of Brown (1996), Duffy and Ochs (1999) and our own, introduced in a first part of the present paper. The main import is the systematic computer scanning of speculative monetary equilibria under drastic bounded rationality of agents, based on behavior previously observed in the lab.

Original language	English
Pages (from-to)	365-379
Number of pages	15
Journal	Physica A: Statistical Mechanics and its Applications
Volume	467
DOIs	https://doi.org/10.1016/j.physa.2016.10.028
State	Published - 1 Feb 2017

Keywords

Agent-based model
Bounded rationality
Kiyotaki & Wright
Speculation

All Science Journal Classification (ASJC) codes

Statistical and Nonlinear Physics
Statistics and Probability

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10.1016/j.physa.2016.10.028

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title = "New leads in speculative behavior",

abstract = "The Kiyotaki and Wright (1989) (henceforth KW) model of money emergence as a medium of exchange has been studied from various perspectives in recent papers. In the present work we propose a minimalistic model for the behavior of agents in the KW framework, which may either reproduce the theoretical predictions of Kiyotaki and Wright (1989) on the emerging Nash equilibria, or (less closely) the empirical results of Brown (1996), Duffy and Ochs (1999) and our own, introduced in a first part of the present paper. The main import is the systematic computer scanning of speculative monetary equilibria under drastic bounded rationality of agents, based on behavior previously observed in the lab.",

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TY - JOUR

T1 - New leads in speculative behavior

AU - Kindler, A.

AU - Bourgeois-Gironde, S.

AU - Lefebvre, G.

AU - Solomon, S.

PY - 2017/2/1

Y1 - 2017/2/1

N2 - The Kiyotaki and Wright (1989) (henceforth KW) model of money emergence as a medium of exchange has been studied from various perspectives in recent papers. In the present work we propose a minimalistic model for the behavior of agents in the KW framework, which may either reproduce the theoretical predictions of Kiyotaki and Wright (1989) on the emerging Nash equilibria, or (less closely) the empirical results of Brown (1996), Duffy and Ochs (1999) and our own, introduced in a first part of the present paper. The main import is the systematic computer scanning of speculative monetary equilibria under drastic bounded rationality of agents, based on behavior previously observed in the lab.

AB - The Kiyotaki and Wright (1989) (henceforth KW) model of money emergence as a medium of exchange has been studied from various perspectives in recent papers. In the present work we propose a minimalistic model for the behavior of agents in the KW framework, which may either reproduce the theoretical predictions of Kiyotaki and Wright (1989) on the emerging Nash equilibria, or (less closely) the empirical results of Brown (1996), Duffy and Ochs (1999) and our own, introduced in a first part of the present paper. The main import is the systematic computer scanning of speculative monetary equilibria under drastic bounded rationality of agents, based on behavior previously observed in the lab.

KW - Agent-based model

KW - Bounded rationality

KW - Kiyotaki & Wright

KW - Speculation

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U2 - 10.1016/j.physa.2016.10.028

DO - 10.1016/j.physa.2016.10.028

M3 - مقالة

SN - 0378-4371

VL - 467

SP - 365

EP - 379

JO - Physica A: Statistical Mechanics and its Applications

JF - Physica A: Statistical Mechanics and its Applications

ER -

New leads in speculative behavior

Abstract

Keywords

All Science Journal Classification (ASJC) codes

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