Modelling learning in evolutionary models: Variations around the Nelson
& Winter Model (1982, part V)

Murat Yildizoglu

Photos from 2002 session

This page describes the workshop I will organize during the next ESSID Summer School.

Note: You can now download the lecture notes of the course (you must remember the link I have given during the workshop).

This workshop proposes an appraisal of different strategies that are available to us when we desire to include individual learning with bounded rationality in agent based evolutionary models. The R&D investment decisions of firms in the Nelson & Winter (1982, part V) model is used as a testbed for these strategies. You consult a quick description of the original model from this page. This is a required reading for the workshop. Other required documents are signalled below with a (*).

After some general considerations about the modelling of bounded rationality, learning and expectations, we will consider more in detail
some specific modelling technics that have are used to represent this learning: simple adaptation of behavioral rules, evolutionary mechanisms
(mutation and imitation), genetic algorithms and classifier systems, and artificial neural networks. The structure and relevance of these
technics will be discussed.

During the last hour of the workshop, experiments in the computer lab will be conducted in order to compare the relative performance of these
approaches using my

Specifically developed Java applet

Some of the references can be downloaded from my web page.



Dosi, G., Faggiolo, G. & Marengo, L. (1999). "Learning in Evolutionary Environments". In Evolutionary Foundations of Economics (K. Dopfer, ed.), Cambridge: Cambridge University Press.

Gigerenzer G. & R. Selten (Èds.), 2001, "Bounded Rationality. The Adaptive Toolbox", MIT Press.

(*) Nelson, R. R. & Winter, S. (1982). "An Evolutionary Theory of Economic Change". London: The Belknap Press of Harvard University (part V).

Sargent, T. J. (1995). "Bounded Rationality in Macroeconomics", Oxford University Press .

Silverberg, G., & Verspagen, B. (1994). "Collective Learning, Innovation and Growth in a Boundedly Rational", Journal of Evolutionary Economics,4.

Simon, H. A. (1982). "Models of Bounded Rationality", Cambridge: MA : The MIT Press.

Simon, H. A. (1976). "From Substantial to Procedural Rationality",in Latsis, S. J. (ed), Method and Appraisal in Economics, Cambridge University Press.

Winter, S., (1984). "Schumpeterian Competition in Alternative Technological Regimes", Journal of Economic Behavior and Organization, 5, 287-320 .

Yildizoglu M, 2002, "Competing R&D Strategies", Computational Economics. 19:51-65, 2002.

(*) Yildizoglu M, 2002,"Connecting adaptive behaviour and expectations in models of innovation: The Potential Role of Artificial Neural Networks", Working Papers of E3i, 2001, forthcoming in the European Journal of Economics and Social Sciences (EJESS).

Yildizoglu M, 2002,"Modeling Adaptive Learning: R&D Strategies in the Model of Nelson & Winter (1982)", Working Papers of E3i.

Yildizoglu M,"Présentation des algorithmes génétiques et de leurs applications en économie", en collaboration avec Thomas Vallée, Working
Papers of E3i, 2001.

©Murat Yildizoglu, 2002