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On “badly behaved” dynamics

Some applications of generalized urn schemes to technological and economic change

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Abstract

Adaptive (path dependent) processes of growth modeled by urn schemes are important for several fields of applications: biology, physics, chemistry, economics. In this paper we present a general introduction to urn schemes, together with some new results. We review the studies that have been done in the technological dynamics by means of such schemes. Also several other domains of economic dynamics are analysed by the same machinery and its new modifications allowing to tackle non-homogeneity of the phase space. We demonstrate the phenomena of multiple equilibria, different vonvergence rates for different limit patterns, locally positive and locally negative feedbacks, limit behavior associated with non-homogeneity of economic environment where producers (firms) are operating. It is also shown that the above urn processes represent a natural and convenient stochastic replicator dynamics which can be used in evolutionary games.

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Authors and Affiliations

  1. University of Rome “La Sapienza”, Rome, Italy

    G. Dosi

  2. International Institute for Applied Systems analysis, Laxenburg, Austria

    Y. Kaniovski

Authors
  1. G. Dosi
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  2. Y. Kaniovski
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Dosi, G., Kaniovski, Y. On “badly behaved” dynamics. J Evol Econ 4, 93–123 (1994). https://doi.org/10.1007/BF01200140

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  • DOI: https://doi.org/10.1007/BF01200140

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