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Was Hayek an Ace?

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  • Nicolaas J. Vriend

    (Queen Mary and Westfield College, University of London)

Abstract

In order to address the question whether Hayek might have been an Agent-based Computational Economist (ACE) avant-la-lettre, we consider an ACE model concerning the phenomenon of information contagion. Alongside increasing returns, network externalities, and information cascades, information contagion has been presented in the literature as an explanation for particular patterns of macrobehavior that may seem at odds with the underlying micromotives. But whereas these other explanations have been shown to have a proper microfoundation, information contagion has remained a phenomenon that seemed to occur only when certain ad hoc rules of thumb for individual behavior are assumed. We show how information-contagious behavior can emerge in a coevolutionary process of interacting adaptive agents, how this is related to various Hayekian themes, and how ACE research in general is an application of Hayek's methodological insights.

Suggested Citation

  • Nicolaas J. Vriend, 1999. "Was Hayek an Ace?," Working Papers 403, Queen Mary University of London, School of Economics and Finance.
    • Handle: RePEc:qmw:qmwecw:403
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Jie-Shin Lin, 2005. "Learning in a Network Economy," Computational Economics, Springer;Society for Computational Economics, vol. 25(1), pages 59-74, February.
    2. Kirman, Alan P. & Vriend, Nicolaas J., 2001. "Evolving market structure: An ACE model of price dispersion and loyalty," Journal of Economic Dynamics and Control, Elsevier, vol. 25(3-4), pages 459-502, March.
    3. Fontana Magda, 2008. "The complexity approach to economics : a Paradigm shift," CESMEP Working Papers 200801, University of Turin.
    4. Nicolaas J. Vriend, 2002. "Was Hayek an Ace?," Southern Economic Journal, John Wiley & Sons, vol. 68(4), pages 811-840, April.
    5. Tomasz Kopczewski, 2015. "Think not calculate! Implementation of Felix Klein postulates in economic education with CAS software," Working Papers 2015-38, Faculty of Economic Sciences, University of Warsaw.
    6. David O'Sullivan & Mordechai Haklay, 2000. "Agent-Based Models and Individualism: Is the World Agent-Based?," Environment and Planning A, , vol. 32(8), pages 1409-1425, August.
    7. Buda, Rodolphe, 2001. "Les algorithmes de la modélisation : une analyse critique pour la modélisation économique," MPRA Paper 3926, University Library of Munich, Germany, revised Jul 2004.
    8. Richard Wagner, 2008. "Finding social dilemma: West of Babel, not east of Eden," Public Choice, Springer, vol. 135(1), pages 55-66, April.
    9. Magda Fontana, 2006. "Computer simulations, mathematics and economics," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 53(1), pages 96-123, March.
    10. Julie Chytilová & Natálie Reichlová, 2007. "Komplexní systémy v teoriích F. A. Hayeka a H. A. Simona [Complex systems in the theories of F. A. Hayek and H. A . Simon]," Politická ekonomie, Prague University of Economics and Business, vol. 2007(5), pages 694-707.
    11. Roberto Leombruni, 2002. "The Methodological Status of Agent-Based Simulations," LABORatorio R. Revelli Working Papers Series 19, LABORatorio R. Revelli, Centre for Employment Studies.
    12. David Chavalarias, 2006. "Metamimetic Games : Modeling Metadynamics in Social Cognition," Post-Print hal-00007743, HAL.

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    More about this item

    Keywords

    Hayek; Agent-based Computational Economics; Decentralized interaction; Distributed knowledge; Reinforcement learning; Information aggregation; Self-organization; Spontaneous order; Methodology;
    All these keywords.

    JEL classification:

    • B21 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Microeconomics
    • B31 - Schools of Economic Thought and Methodology - - History of Economic Thought: Individuals - - - Individuals
    • B41 - Schools of Economic Thought and Methodology - - Economic Methodology - - - Economic Methodology
    • D11 - Microeconomics - - Household Behavior - - - Consumer Economics: Theory
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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