Was Hayek an Ace?

To address the question whether Hayek might have been an agent-based computational economist (ACE) avant-la-lettre, I consider an ACE model concerning the phenomenon of information contagion. Alongside increasing returns, network externalities, and information cascades, information contagion has bee...

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Bibliographic Details
Published in:Southern Economic Journal Vol. 68; no. 4; pp. 811 - 841
Main Author: Vriend, Ncolaas J.
Format: Article
Published: Southern Economic Association April 2002
Subjects:
Online Access:View this record in EBSCOhost
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        atl: Was Hayek an Ace?
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        au: Vriend, Ncolaas J.
      su:
        Hayek, Friedrich A. von (Friedrich August), 1899-1992
        Information theory in economics
        Econometric models
        Economics
        Game theory
      sug:
        subj:
          Information theory in economics
          Econometric models
          Economics
          Game theory
          Hayek, Friedrich A. von (Friedrich August), 1899-1992
      ab: To address the question whether Hayek might have been an agent-based computational economist (ACE) avant-la-lettre, I 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. 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. I 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 can be seen as an application of Hayek's methodological insights. Reprinted by permission of the publisher.
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    language: English
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