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5 Some Example Applications
5.3 Communication and negotiation
The collapse of the old East European command economies have produced a very fluid situation, where nobody understands much of the total picture and it is up to each firm to establish its own ways of coping, even including such basic behaviours as to when it is advisable to pay ones debts. A simple model of such an economy, where each firm is learning how to behave from observing those it immediately trades with, shows some informative and credible features. For example if ones assumes that price behaviour is determined by agents observing and copying successful firms they trade with, one obtains a characteristically uneven inflationary price curve.
The Role of Expressiveness in Modelling Structural Change - Bruce Edmonds - 16 MAY 96
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