Some elements for a definition of an evolutionary efficiency criterion

Pérez, Félix Fernando Múñoz; Encinar, María-Isabel

doi:10.1007/s00191-019-00608-z

Cited by 3 publications

(1 citation statement)

References 58 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Therefore, professionals were more allocative efficient than MACHINEs since they obtained more rights regardless of profits. Additionally, in terms of bidders' goals, it could be said that a bid is allocative efficient if the bidder gets the capacity resource (Muñoz & Encinar, 2019). Something different is the 'price' paid to get it.…”

Section: The Influence Of Rational Behaviormentioning

confidence: 99%

Does size matter in group decision making? Simulation experiments with LNG professionals bidding in auction markets

Otamendi

Pérez

2022

JIEM

View full text Add to dashboard Cite

Purpose: An important issue in decision-making processes is whether groups decide better than individuals. This paper compares the bidding behavior of groups of professionals while playing a business game that simulates, in a controlled environment, the sequential unit capacity auctions in the Spanish LNG market.Design/methodology/approach: First, we randomly grouped professionals in groups of different size—SOLOs, DUOs, and TRIOs—and played the game in-situ under both First and Second price unit capacity auctions, with SOLOs outperforming groups. Second, we ran non-parametric simulations mixing professionals in groups of different size, in which bids were coupled with those registered during the in-situ sessions. Third, we ran non-parametric simulations in which the players were either ‘rational machines’ that bid according to Nash equilibrium or groups of ‘professionals’ of different size.Findings: The size of the decision group does matter. After the in-situ and the bootstrapped simulated games, the main result is that size does matter, and groups are not necessarily superior to individuals bidding alone. SOLO players bid closer to MACHINEs and lower than DUOs or TRIOs, while obtaining about the same number of units and higher payoffs than groups. Additionally, the ‘degree of rationality’ of the participants does also matter.Research limitations/implications: Even after applying the hybrid simulation methodology to increase sample size and allow for additional experimental settings, some of the scenarios are fictitious. Modification of the business game to allow for an even more realistic game could be implemented.Practical implications: After the hybrid simulation approach, the main implication of the paper is that to increase efficiency in resource allocation professionals should bid individually while using the theoretical knowledge of rational machines.Originality/value: To our knowledge, this is the first time that this double-experiment simulation methodology is used to analyze bidding behavior in auctions.

show abstract

Section: The Influence Of Rational Behaviormentioning

confidence: 99%

Does size matter in group decision making? Simulation experiments with LNG professionals bidding in auction markets

Otamendi

Pérez

2022

JIEM

View full text Add to dashboard Cite

show abstract

The fundamentally uncertain economic agent: Brian J. Loasby’s growth of knowledge approach to the psychology of human action

Muñoz

2024

Mind Soc

View full text Add to dashboard Cite

The coevolution of technology, markets, and culture: the challenging case of AI

Muñoz

2024

Rev Evol Polit Econ

View full text Add to dashboard Cite

Artificial intelligence (AI) is at the center of economic, social, political, and ethical debate. For the first time in human history, since the appearance of writing, a new type of “intelligence” is impacting the very nature of social relationships. New technologies are not only changing the operating model of markets and value chains in an accelerated way but also in how information is generated and processed, how labor, social relations, and culture evolve, etc. In this paper, we pursue two main goals. First, to set up an analytical framework in which cognitive, technical, and cultural dynamics are intertwined with the processes of deployment of economic action. Secondly, we utilize this framework to explore some key features and challenges of AI and its impact on coevolutionary processes at the cognitive, market, and cultural levels. We devote special attention to the consequences that AI may have for the concept of (economic) rationality and the formation of action plans. We conclude that AI will massively enhance agents’ spaces of action by improving efficiency and exploring new possibilities. However, AI will not change the nature of human action and the structure of the evolution of the economic system.

show abstract

Some elements for a definition of an evolutionary efficiency criterion

Cited by 3 publications

References 58 publications

Does size matter in group decision making? Simulation experiments with LNG professionals bidding in auction markets

Does size matter in group decision making? Simulation experiments with LNG professionals bidding in auction markets

The fundamentally uncertain economic agent: Brian J. Loasby’s growth of knowledge approach to the psychology of human action

The coevolution of technology, markets, and culture: the challenging case of AI

Contact Info

Product

Resources

About