Evolutionary models in economics: a survey of methods and building blocks

This paper assesses methods and components of formal evolutionary-economic modelling. Methods are broadly classified into evolutionary game theory and selection dynamics, evolutionary computation and multi-agent models, each with relevant subcategories. The components or building blocks are organized into diversity, innovation, selection, bounded rationality, diffusion, path dependency and lock-in, coevolution, multilevel and group selection, and mechanisms of growth. The number of alternatives that has been proposed for each category is vast, making it difficult to comprehend the variety of assumptions and formalizations underlying existing evolutionary-economic models. Our survey aims to clarify for each model component the choice range, formal expressions, associated assumptions, and possible techniques for formalization. Our study is unique in that it provides more information about the formal details of specific model components and is considerably more inclusive than earlier reviews.     

Manufacturing restructuring and the role of real exchange rate shocks

Using a new and extensive micro data set we investigate the impact of a change in international competitive pressure on industrial performance and restructuring. Unlike previous studies we are able to account for the heterogeneity across firms in their exposure to foreign competition. We focus on a situation akin to a natural experiment, and examine the impact of a sharp real appreciation of the Norwegian Krone in the early 2000s on Norwegian manufacturing firms which differ substantially in their trade orientation. A change in the real exchange rate (RER) affects a firm through three different channels: (i) firm's export sales, (ii) firm's purchases of imported inputs, and (iii) import competition faced in the domestic market. Unlike previous studies, we are able to examine all three channels. Both net exporters and import-competing firms were exposed to increased competition due to the real appreciation. Both groups reacted by shedding labor, but only the first group experienced increasing labor productivity. Partly, the productivity improvements came from measured TFP gains, while capital deepening does not appear to have been affected by the shock.     

Effect of electromagnetic field accompanying the magnetic resonance imaging on human heart rate variability – a pilot study

The effect of electromagnetic field on cardiovascular system in the literature is defined in ambiguous way. The aim of this study was to evaluate the effect of electromagnetic field on the heart rate variability (HRV) during the examination with magnetic resonance. Forty-two patients underwent Holter ECG heart monitoring for 30 minutes twice: immediately before and after the examination with magnetic resonance imaging (MRI). HRV was analysed by assessing a few selected time and spectral parameters. Is has been shown that standard deviation of NN intervals (SDNN) and very low frequency rates increased, whereas the low frequency:high frequency parameter significantly decreased following the MRI examination. These results show that MRI may affect the HRV most likely by changing the sympathetic-parasympathetic balance.     

Sustainability Management of Hotels: How Do Customers Respond in Online Reviews?

The purpose of this study was to investigate how guests respond to the sustainability efforts of sustainably managed hotels by discussing them in reviews posted online. Thus, an exploratory research design and the content analysis method were chosen for this study. The content analysis technique was used to analyze User Generated Content and to explore what attributes of sustainability are perceived as the most important by hotel guests in online reviews and whether they generate positive or negative feelings. An analysis of the reviews showed that hotel guests perceive sustainability positively: most indicators were discussed in a positive context, and reviews that contained sustainability attributes had higher guest ratings than other reviews. Explicit references to sustainability were found in only 6.8% of all customer comments. The most frequently encountered indicators in guest reviews were biodiversity, education and sustainable products. Customers mainly discuss attributes that have direct impacts on their experience or are observable at the hotel. Customers are likely to realize that a hotel’s commitment to sustainability can excuse the hotel for a suffered inconvenience. This finding implies that hoteliers should educate guests on their sustainability measures, as higher awareness may increase customer satisfaction.     

Demand-supply coevolution with multiple increasing returns: Policy analysis for unlocking and system transitions

Currently, there is much concern about how to make a transition away from environmentally unsustainable activities to sustainable ones, notably in agriculture, energy and transport sectors. The success of such a transition depends on whether one is capable of escaping the lock-in of the dominant, unsustainable technology, which is usually due to multiple lock-in factors. Here, we present a formal model to study the likelihood of market lock-in in the presence of multiple increasing returns. The proposed framework describes coevolving populations of boundedly rational consumers and innovating firms. On the demand side, we focus attention on the interdependence of consumer preferences. We examine the impact of alternative demand side specifications on the direction of innovative activities of firms. On the supply side, a technological trajectory arises from the interplay of incremental innovation, search for a new product design and marketing activities. Our framework provides a general and complete account of increasing returns on supply and demand sides, as well as their synergetic interactions. The model is used to study a number of policy instruments aimed at escaping lock-in.     

The Impact of Resource Uncertainty and Intergroup Conflict on Harvesting in the Common-Pool Resource Experiment

How do resource uncertainty and intergroup conflict affect intragroup cooperation over resources in the common pool dilemmas? Does a danger of sudden resource depletion encourage random acts of violence? There are concerns that climate change will escalate conflicts over, and the scarcity of, renewable resources, which are already under threat or in a state of decline. However, we know surprisingly little about the impact of uncertainty on intergroup conflict over resources. In this paper, we present experimental evidence from a mixed design experiment with two-between-group factors: (1) the presence (or absence) of shocks that can destroy a part of resources; and (2) the availability of intergroup conflict. We find that random shocks encourage resource conservation within groups. The positive impact of resource uncertainty on resource conservation disappears in the presence of conflict. It seems that subjects protect themselves from resource exhaustion in the presence of shocks by engaging in conflict and taking resources from the out-group instead of reducing extraction. In general, conflict promotes intragroup cooperation, but this is conditional on the outcomes of past conflicts. In particular, groups harvest more after wins, and only reduce extraction after losing resources in conflict.