Neglected Theories of Business Cycle—Alternative Ways of Explaining Economic Fluctuations

Klára Čermáková, Michal Bejček, Jan Vorlíček and Helena Mitwallyová
Additional contact information
Klára Čermáková: Department of Economics, Prague University of Economics and Business, 130 67 Prague, Czech Republic
Michal Bejček: Faculty of Mathematics and Physics, Charles University, 110 00 Prague, Czech Republic
Jan Vorlíček: Department of Economics, Prague University of Economics and Business, 130 67 Prague, Czech Republic
Helena Mitwallyová: Department of Economics, Prague University of Economics and Business, 130 67 Prague, Czech Republic

Data, 2021, vol. 6, issue 11, 1-12

Abstract: The business cycle is a frequent topic in economic research; however, the approach based on individual strategies often remains neglected. The aspiration of this study is to prove that the behavior of individuals can originate and fuel an economic cycle. For this purpose, we are using an algorithm based on a repeated dove–hawk game. The results reveal that the sum of output in a society is affected by the ratio of individual strategies. Cyclical changes in this ratio will be translated into fluctuations of the total product of society. We present game theory modelling of a strategic behavioral approach as a valid theoretical foundation for explaining economic fluctuations. This article offers an unusual insight into the business cycle’s causes and growth theories.

Keywords: economic fluctuations; strategic behavior; growth theories; decision making; game theory (search for similar items in EconPapers)
JEL-codes: C8 C80 C81 C82 C83 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/2306-5729/6/11/109/pdf (application/pdf)
https://www.mdpi.com/2306-5729/6/11/109/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jdataj:v:6:y:2021:i:11:p:109-:d:661024

Access Statistics for this article

Data is currently edited by Ms. Cecilia Yang

More articles in Data from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().