A Cellular Automata Simulation of the 1990s Russian Housing Privatization Decision

Maria Plotnikova () and Chokri Dridi
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Maria Plotnikova: Department of Economics, University of Reading

No em-dp2010-05, Economics Discussion Papers from Department of Economics, University of Reading

Abstract: The study uses a computational approach to study the phenomenon of housing privatization in Russia in the 1990s. As part of the housing reform flats in multi-family buildings were offered to their residents free of payment. Nevertheless rapid mass housing privatization did not take place. While this outcome admits a number of explanations this analysis emphasizes the fact that the environment in which the decision-making households were operating had a high degree of uncertainty and imposed a high information-processing requirement on the decision-makers. Using the bounded rationality paradigm, the study builds a case for a cellular automata simulation of household decision-making in the context of housing privatization reforms in Russia in the 1990s. Cellular automata is then used to simulate a household's decision to become the owner of its dwelling.

Keywords: cellular automata; complex systems; housing reform; Russia; simulation (search for similar items in EconPapers)
JEL-codes: C45 C63 P21 R21 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2010-08-01
New Economics Papers: this item is included in nep-cmp, nep-tra and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:rdg:emxxdp:em-dp2010-05

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