Connecting Adaptive Behaviour and Expectations in Models of Innovation: The Potential Role of Artificial Neural Networks
E3I Working Paper No. 2001-2
22 Pages Posted: 15 Mar 2004
Date Written: 2001
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).
Keywords: Bounded rationality, Learning, Genetic Algorithms, Artificial Neural Networks, Industrial Dynamics, Innovation
JEL Classification: L1, D92, D4, C63
Suggested Citation: Suggested Citation