By Richard H. Day, Theodore Groves
Read Online or Download Adaptive Economic Models. Proceedings of a Symposium Conducted by the Mathematics Research Center, the University of Wisconsin–Madison, October 21–23, 1974 PDF
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Additional resources for Adaptive Economic Models. Proceedings of a Symposium Conducted by the Mathematics Research Center, the University of Wisconsin–Madison, October 21–23, 1974
9 Recent developments in decentralized decision theory have an essen- tially adaptive character. A classic example is Malinvaud . See See also Mesarovic et al. . 10 The temporary equilibrium method was originated by Cournot, elabor- orated by Marshall and Hicks, and is being used in the contemporary monetary, general equilibrium literature reviewed by Hool elsewhere in this volume. From the present point of view it is a device for expressing the "short-run" adaptive mechanisms that underlie the exchange of money and commodities.
We desire to maintain some function of the state of the controlled system at a constant level, in the face of randomly fluctuating environments environments producing deviations from constancy. The characteristic property of the feedback homeostat is that the controller looks only at the controlled system, and not at the environment. From the deviation of the state of the controlled system away from the desired one, the controller evaluates an error function; from the value of the error function, the controller then modifies the dynamics of the controlled system in such a way as to diminish the error.
1939], The Wisdom of the Body (revised edition), New York: W. W. Norton and Co. , Inc. 35 RICHARD H. DAU Childe, V. G. , Social Evolution, London: Watts and Co. Culbertson, John , Economic Development: An Ecological Approach, New York: Alfred A. Knopf. Cyert, R. M. and J. G. March , A Behavioral Theory of the Firm, Englewood Cliffs, New Jersey: Prentice-Hall. Day, R. H. [forthcoming], "Behavioral Economics" in Beckmann, Menges and Selten (eds. ), Handwörterbuch der Mathematischen Wirts chaftswis senschaften, Opladen: Westdeutscher Verlag.