Creativity in a Theory of Entrepreneurship
43 Pages Posted: 29 Nov 2016 Last revised: 15 Nov 2018
Date Written: November 26, 2016
I construct an economic agent in light of literature discussing entrepreneurship and creativity and apply this construction to an agent-based model. I use a heuristic rendition of Sugarscape (Epstein and Axtell 1996; Wilensky 1999) to show that creativity is generated by the agent and is regulated by a system subject to competitive pressures. Agents have some array of strategy structures and parameters that they alter by experimentation. When a system reaches a persistent state, creativity, as defined by this experimentation, settles to a relatively low level. However, if this system is upset by an exogenous shock, the agents must reorient themselves to the new environment by a process of trial and error in order to form a new regime of coordination.
Keywords: Entrepreneurship, Agent-based Computational Economics, Schumpeter, Kirzner
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