Nonlinearity, Bounded Rationality, and Heterogeneity

Some Aspects of Market Economies as Complex Systems

Authors: Onozaki, Tamotsu

  • Expounds on nonlinear economic dynamics, providing an alternative approach that explains the complex dynamical behavior of market economies
  • Goes beyond the neoclassical equilibrium paradigm by focusing on nonlinearity, bounded rationality, and heterogeneity
  • Examines recent developments in agent-based simulation studies as a promising extension of nonlinear economic dynamics
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eBook $99.00
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  • ISBN 978-4-431-54971-0
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  • Immediate eBook download after purchase
Hardcover $129.00
price for USA
  • ISBN 978-4-431-54970-3
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  • Usually dispatched within 3 to 5 business days.
About this book

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 behavior if all agents are perfectly rational, as is usually assumed in neoclassical economics. Agents who are boundedly rational have to struggle to do their best with limited information and tend to adapt to their economic environment without knowing what is the best. Furthermore, the heterogeneity of firms or consumers dyes the fabric of complex dynamics woven from the warp and woof.

Table of contents (7 chapters)

  • The Nature and Significance of Nonlinear Economic Dynamics

    Onozaki, Tamotsu

    Pages 3-23

  • One-Dimensional Nonlinear Cobweb Model

    Onozaki, Tamotsu

    Pages 25-77

  • Two-Dimensional Nonlinear Cobweb Model

    Onozaki, Tamotsu

    Pages 79-126

  • From Nonlinear Economic Dynamics to Complexity Economics

    Onozaki, Tamotsu

    Pages 129-136

  • High-Dimensional Nonlinear Cobweb Model

    Onozaki, Tamotsu

    Pages 137-158

Buy this book

eBook $99.00
price for USA (gross)
  • ISBN 978-4-431-54971-0
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover $129.00
price for USA
  • ISBN 978-4-431-54970-3
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
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Bibliographic Information

Bibliographic Information
Book Title
Nonlinearity, Bounded Rationality, and Heterogeneity
Book Subtitle
Some Aspects of Market Economies as Complex Systems
Authors
Copyright
2018
Publisher
Springer Japan
Copyright Holder
Springer Japan KK
eBook ISBN
978-4-431-54971-0
DOI
10.1007/978-4-431-54971-0
Hardcover ISBN
978-4-431-54970-3
Edition Number
1
Number of Pages
XIII, 220
Number of Illustrations and Tables
58 b/w illustrations, 22 illustrations in colour
Topics