Local coordination under bounded rationality: Coase meets Simon, finds Hayek

• Main Author: WOODARD, C. Jason
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2010
• Subjects: Complex networks; Bounded rationality; Institutional economics; NKC model; Databases and Information Systems; Numerical Analysis and Scientific Computing; Strategic Management Policy
• Online Access: https://ink.library.smu.edu.sg/sis_research/7046; https://ink.library.smu.edu.sg/context/sis_research/article/8049/viewcontent/Local_Coordination_under_Bounded_Rationality__Coase_Meets_Simon.pdf
• Institution: Singapore Management University

This paper explores strategic behavior in a network of firms using an agent-based model. The model exhibits a tension between economic efficiency and the stability of the network in the face of incentives to change its configuration. This tension is to be expected because the conditions of the Coase...