This volume is centered around the issue of market design and resulting market dynamics. The economic crisis of 2007-2009 has once again highlighted the importance of a proper design of market protocols and institutional details for economic dynamics and macroeconomics. Papers in this volume capture institutional details of particular markets, behavioral details of agents' decision making as well as spillovers between markets and effects to the macroeconomy. Computational methods are used to replicate and understand market dynamics emerging from interaction of heterogeneous agents, and to develop models that have predictive power for complex market dynamics. Finally treatments of overlapping generations models and differential games with heterogeneous actors are provided.

This volume collects research papers addressing topical issues in economics and management with a particular focus on dynamic models which allow to analyze and foster the decision making of firms in dynamic complex environments. The scope of the contributions ranges from daily operational challenges firms face to strategic choices in dynamic industry environments and the analysis of optimal growth paths. The volume also highlights recent methodological developments in the areas of dynamic optimization, dynamic games and meta-heuristics, which help to improve our understanding of (optimal) decision making in a fast evolving economy.

This book analyses decision-making in dynamic economic environments. By applying a wide range of methodological approaches, combining both analytical and computational methods, the contributors examine various aspects of optimal firm behaviour and relevant policy areas. Topics covered include optimal control, dynamic games, economic decision-making, and applications in finance and economics, as well as policy implications in areas such as pollution regulation. This book is dedicated to Christophe Deissenberg, a well-known and distinguished scholar of economic dynamics and computational economics. It appeals to academics in the areas of optimal control, dynamic games and computational economics as well as to decision-makers working in policy domains such as environmental policy.

This book deals with the learning behavior of boundedly rational agents in economic systems. In particular, the modeling of learning populations by genetic algorithms is studied in detail. After an extensive review and discussion of the existing literature in the first part, a mathematical analysis of the dynamic properties of genetic algorithm learning in the general framework of systems with a state dependent fitness function is provided. It is shown that co-evolutionary economic models typically fall into this class and the usefulness of the analytical results derived is illustrated in several game theoretic and microeconomic models. The mathematical analysis is complemented by extensive simulation analyses. The last part of the book demonstrates how the obtained theory may be used to design the algorithm such that the learning of equilibria of the economic system is facilitated.

This volume is centered around the issue of market design and resulting market dynamics. The economic crisis of 2007-2009 has once again highlighted the importance of a proper design of market protocols and institutional details for economic dynamics and macroeconomics. Papers in this volume capture institutional details of particular markets, behavioral details of agents' decision making as well as spillovers between markets and effects to the macroeconomy. Computational methods are used to replicate and understand market dynamics emerging from interaction of heterogeneous agents, and to develop models that have predictive power for complex market dynamics. Finally treatments of overlapping generations models and differential games with heterogeneous actors are provided.

The fact that I have the opportunity to present a second edition of this monograph is an indicator for the growing size of the community concerned with agent-based computational economics. The rapid developments in this field make it very difficult to keep a volume like this, which is partly devoted to surveying the literature, up to date. I have done my best to incorporate the relevant new developments in this revised edition but it is in the nature of such a work that the selection of material covered is biased by the authors personal interest and his informational constraints. My apologies go to all researchers in this field whose work is not or not adequately represented in this book. Besides the correction of some errors and typos several additions have been made. In the literature survey sections 2.4 (which was also reorganized) and 3.5 new material was added. I have also added a new section in chapter 3 which deals with the question how well empirically observed phenomena can be explained by GA simulations. A new section in chapter 6 presents a rather extensive analysis of the behavior of a two population GA in the framework of a sealed bid double auction market. Further minor additions and changes were made throughout the text.

This book analyses decision-making in dynamic economic environments. By applying a wide range of methodological approaches, combining both analytical and computational methods, the contributors examine various aspects of optimal firm behaviour and relevant policy areas. Topics covered include optimal control, dynamic games, economic decision-making, and applications in finance and economics, as well as policy implications in areas such as pollution regulation. This book is dedicated to Christophe Deissenberg, a well-known and distinguished scholar of economic dynamics and computational economics. It appeals to academics in the areas of optimal control, dynamic games and computational economics as well as to decision-makers working in policy domains such as environmental policy.