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Learning And Imitation: Transitional Dynamics In Variants Of The Bam

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  • D. HEYMANN

    (CEPAL (Comisión Económica para América Latina y el Caribe, United Nations) and Facultad de Ciencias Económicas, Universidad de Buenos Aires, Paraguay 1178, (1057) Buenos Aires, Argentina)

  • R. P. J. PERAZZO

    (Centro de Estudios Avanzados and Departamento de Física, Facultad de Ciencias Exactas y Naturales, Universidad de Buenos Aires, Ciudad Universitaria, Pabellon 1, (1428) Buenos Aires, Argentina)

  • A. R. SCHUSCHNY

    (CEPAL (Comisión Económica para América Latina y el Caribe, United Nations), Av. Dag. Hammarskjold 3477, Vitacura, Santiago de Chile, Casilla 179-D, Chile)

Abstract

We study the dynamics of self-organized systems when disturbed by shocks. For this purpose, we consider extensions of the "Bar Attendance Model" [1] (BAM), which provides a stylized setting for the analysis of the emergence of coordination in the behavior of a large collection of agents. We represent the learning process of the agents through genetic algorithms, which respond to global (publicly available) information. In addition, we allow the actions of agents to be influenced by local information, as expressed in the behavior and performance of neighboring individuals. In the context of the BAM, we show that, in the event of a shock, the imitation behavior may become widespread and generate a contagion cascade which mimics a collective panic. We use this framework to represent features of the dynamics of an actual bank run.

Suggested Citation

  • D. Heymann & R. P. J. Perazzo & A. R. Schuschny, 2004. "Learning And Imitation: Transitional Dynamics In Variants Of The Bam," Advances in Complex Systems (ACS), World Scientific Publishing Co. Pte. Ltd., vol. 7(01), pages 21-38.
    • Handle: RePEc:wsi:acsxxx:v:07:y:2004:i:01:n:s0219525904000020
    DOI: 10.1142/S0219525904000020
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    References listed on IDEAS

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    1. Irene Giardina & Jean-Philippe Bouchaud, 2002. "Bubbles, crashes and intermittency in agent based market models," Science & Finance (CFM) working paper archive 500022, Science & Finance, Capital Fund Management.
    2. Abhijit V. Banerjee, 1993. "The Economics of Rumours," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 60(2), pages 309-327.
    3. Abhijit V. Banerjee, 1992. "A Simple Model of Herd Behavior," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(3), pages 797-817.
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    1. Alvarez, Emiliano & Brida, Juan Gabriel, 2019. "What about the others? Consensus and equilibria in the presence of self-interest and conformity in social groups," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 518(C), pages 285-298.

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