Want to learn more about money? A U.S. Dollar probably isn’t what you think. This Mises Institute article is a good overview of the difference between a Dollar and a Federal Reserve dollar bill. Mises Institute: A Constitutional Dollar
The „tracking game“ is a nonlinear extension of the linear regulator problem (also known as „tracking problem“), which is well known from LQ optimal control theory. Such a game taking place in a shared environment is characterized by the fact that the effectiveness of individual decisions heavily depends on the decisions of other players.
The driving service Uber is getting ready for New Year’s Eve, and using it’s knowledge of economics and prices to not only increase sales, but provide a better service to it’s customers.
You always hear people complaining about a the fact that a Free-Market has boom and bust cycles, and how that is a bad thing. The reality is that you really do want the market to boom and bust, whether you know it or not.
Evolutionary methods can be used to shine a light on the conditions for selfish or cooperative behavior. Imagine a situation, where you have to work together with a team of random strangers. The outcome will be depending on the sum of the individual efforts, but the success will be equally shared afterwards. In a computer experiment, we have investigated the evolution of cooperative behavior in two scenarios. Players were randomly divided into groups and had the chance to increase their investment by paying money into a pot where it was multiplied. The players were controlled by a neural network…
In today’s global economy, we can’t begin to count how many transactions between buyers and sellers happen each day. But who decides the individual costs of all of these goods and services? Why do those costs change over time? Why are some things so ridiculously expensive? In a free-market economy, prices are so much more than the amount of money we pay when we buy something.
Before we discuss the role of prices, I will set up a thinking experiment that we will use in subsequent discussions about the role of prices.