You are here

Dissertations

Essays on bounded rationality, complexity, and strategic interactions

Agostino Manduchi, 1999
Faculty Advisor: Duncan Foley

Abstract

The present dissertation consists of three essays. The essays analyze situations in which the economic agents face plausible limitations and costs of decision-making and communication. Such limitations and costs play a substantial role in determining the results of the analysis developed in each essay.

The first essay analyzes the interactions among adaptive agents, producing idiosyncratic goods. Each agent cannot consume the own good, but can only consume the good produced by a neighbor, as defined by the spatial structure imposed on the economy. A protocol governing the exchanges, requiring the agents to put forth some marketing effort, is considered. Its performance-and the average reward to production-depends on the percentage of active producers. The interactions between the marketing and the production decisions can cause fluctuations in average output and utility.

The second essay analyzes an economy with a spatial structure in which neighboring agents play a repeated prisoner's dilemma, by means of two-state automata. The model can have multiple stationary Nash-equilibria. However, the equilibria-except those with pairs of neighboring cooperators, amidst regions of defectors, and possibly those with generalized cooperation-may not survive the introduction of “trembles”. If the players can condition their responses to acts of defection upon the defector's identity, additional “robust” ways to implement the configurations of cooperators and defectors may become available.

The third essay analyzes the evolutionary dynamics of a modified version of Rosenthal's “centipede”. The players' strategies are represented by finite-state automata, possibly featuring different complexity costs. With the unperturbed replicator dynamics, and low levels of the complexity costs, the asymptotic attractor of the fractions of the populations adopting different automata is a subset of that of the original game, and is such that all players' payoffs are zero. The model also has an unstable equilibrium at which some players achieve strictly positive payoffs. Higher levels of the complexity cost and-or perturbations of the replicator dynamics can change the qualitative dynamics of the system, and lead the players to obtain strictly positive payoffs, on average.

Doctoral Program News

Honigsberg featured in Ideas at Work

The August issue of Ideas at Work features research that doctoral candidate Colleen Honigsberg led in conjunction with Sharon Katz.

Read More about Colleen

Wazlawek featured in Ideas at Work

Abbie Wazlawek's joint research with Professor Daniel Ames is featured in the June 24th, 2014 edition of Ideas at Work

Read More about Abbie

Ethan Rouen featured in Ideas at Work

Ethan Rouen's joint research with Professor Dan Amiram is featured in the May 15th, 2014 edition of Ideas at Work

Read More about Abbie

Rivas Wins Fellowship

The PhD program is proud to congratulate Miguel Duro Rivas, who was awarded the Nasdaq Educational Foundation Doctoral Dissertation Fellowship.

Read More about Miguel

Wong wins Deloitte Fellowship

We are proud to announce that Yu Ting (Forester) Wong is one of the recipients of the 2014 Deloitte Foundation Doctoral Fellowship in Accounting.

Read More About Yu Ting >

The PhD Program Congratulates John Yao

PhD student John Yao was a finalist in the 2013 M&SOM (Manufacturing & Service Operations Management) student paper competition.

Read More About John >

Honigsberg Named Postdoctoral Fellow

The PhD program is proud to congratulate Colleen Honigsberg, who was named the Postdoctoral Fellow in Corporate Governance at the Millstein Center at Columbia Law School in October 2013

Read More about Colleen >

 

Application Deadlines

Master of Science in Marketing >

For Fall 2015 Entry:
Deadline: December 15th, 2014

 

Master of Science in Financial Economics

For Fall 2015 Entry:
Deadline: December 15th, 2014

 

Master of Science in Management Science and Engineering

For Fall 2014 Entry:
Early Decision: Jan 6, 2014
Regular Decision: Feb 15, 2014

 

Apply Now
Sept 2015

Doctoral
Deadline: 01/05/15

MS Marketing
Deadline: 12/15/2014

MS Financial Economics
Deadline: 12/15/2014

MS Leadership
Rolling admission

Check Application Status

Students listening to classroom lecture

Once you've submitted your application, you can login and track your status by using the link below.

Check Status