Choice under Markovian Constraints

Leonardo Boncinelli

Department of Economics University of Siena from Department of Economics, University of Siena

Abstract: In this paper I provide a descriptive model of choice over time by a population of constrained maximizing agents. Agents’ choice sets are markovian in the sense that they depend on previous choices. The unperturbed dynamics turns out to be trapped into local maxima whatever the length of memory. In the presence of perturbations efficiency is got with a memory of at least two periods. This provides a useful insight for what drives to efficient evolution in this setting: perturbations create variety and a two period long memory allows comparisons and selection

Keywords: personal experience; limited cognitive capabilities; stochastically stable distribution (search for similar items in EconPapers)
JEL-codes: D01 D80 D81 (search for similar items in EconPapers)
Date: 2007-10
New Economics Papers: this item is included in nep-cbe, nep-dcm and nep-evo
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:usi:wpaper:516

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