Nonlinearity, Bounded Rationality, and Heterogeneity (eBook, PDF)
Tamotsu Onozaki
eBook, PDF

Nonlinearity, Bounded Rationality, and Heterogeneity (eBook, PDF)

Some Aspects of Market Economies as Complex Systems

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This book pursues a nonlinear approach in considering both chaotic dynamical models and agent-based simulation models of economics, as well as their dynamical behaviors. Three key concepts arising in this context are "nonlinearity," "bounded rationality" and "heterogeneity," which also make up the title of the book. Nonlinearity is the warp that runs throughout all models because systems that exhibit chaotic or other complex behavior in the absence of any exogenous disturbances are absolutely nonlinear. Bounded rationality constitutes the woof, because economic systems do not exhibit complex b...

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