Equilibrium

The end of the Civil War may have marked the end of the official fighting, but the Congressional strategy to remake the South during Reconstruction led to a new period of warfare–a...

Goodman addressed the problem of induction twice. His first approach is famous, centers on his “new riddle of induction,” and is the locus classicus of modern reflective equilibriu...

Chapter 5 focuses on producers’ net worth. It joins a large strand rooted in the financial literature, which points out that under asymmetric information, producers need own equity...

This chapter examines the extent to which models based on evolutionary economics can provide a worthy alternative to neoclassical equilibrium models. The chapter discusses the diff...

This chapter discusses agent judgment and when relying on agents will be a more or less reliable strategy. The chapter explores agent motivation and why it is critical to successfu...

Norms requiring individuals to treat their partners fairly can evolve even in populations that lack well-defined identity groups. The emergence of fairness equilibria in the bargai...

Continuous‐time filtering is explained, including the Kalman filter and filtering for a Markov chain with hidden states. Filtering theory is applied to analyze portfolio choice and...

This chapter studies the high crime equilibrium and provides an explanation for how crime for profit has evolved in most countries into very violent criminality. An overview of the...