Free Access
Volume 15, Number 3, 2001
Evolution and Learning in Markets
Page(s) 203 - 220
DOI: 10.1051/ejess:2001105

European Journal of Economic and Social Systems 15 N°3 (2001) 203-220

Connecting adaptive behaviour and expectations in models of innovation: The Potential Role of Artificial Neural Networks

Murat Yildizoglu

IFREDE-E3I, Université Montesquieu Bordeaux IV, Avenue Leon Duguit, F-33608 Pessac, France.

In this methodological work I explore the possibility of explicitly modelling expectations conditioning the R&D decisions of firms. In order to isolate this problem from the controversies of cognitive science, I propose a black box strategy through the concept of "internal model". The last part of the article uses artificial neural networks to model the expectations of firms in a model of industry dynamics based on Nelson & Winter (1982).

Key words: Neural networks, genetic algorithms, bounded rationality, learning, expectations, innovation dynamics.

© EDP Sciences 2001