Adaptive Processes in Economic Systems

PrefaceChapter 1 Introduction 1.1 The Historical and Current Development of Adaptive Theory 1.2 Common Properties of Adaptive Processes ReferencesChapter 2 The Mathennatical Model 2.1 Introduction 2.2 Discrete Processes 2.3 Some Discrete Sequential Processes 2.4 The Role of the Decision Maker 2.5 The Optimal Type 2 (Adaptive) Process 2.6 The Constrained, Optimal Type 2 (Adaptive) Process 2.7 Causality and Markov Processes 2.8 The Dynamic Programming Model ReferencesChapter 3 The Primitive Adaptive Process 3.1 The Notion of Learning and Adaptation 3.2 Some Hypothetical Experiments 3.3 An Adaptive Process of the First Kind 3.4 An Adaptive Process of the Second Kind 3.5 Mixed Adaptive Processes of the First and Second Kind 3.6 Summary ReferencesChapter 4 Subjective Probability 4.1 Introduction 4.2 A Heuristic Example—The Three Investors 4.3 Economic Environmental Processes 4.4 A Digression on Statistical Estimators 4.5 Multinomial Subjective Probabilities 4.6 Properties of the Subjective Probability Vector ReferencesChapter 5 The Role of Entropy in Economic Processes 5.1 The Concept of Entropy Time 5.2 Entropy and Information 5.3 The Entropy Paradox ReferencesChapter 6 Adaptive Economic Processes 6.1 Introduction 6.2 General Deterministic Dynamic Economic Process 6.3 The Stochastic Dynamic Economic Process 6.4 The Adaptive Stochastic Dynamic Economic Process 6.5 Stochastic Growth ProcessChapter 7 An Adaptive Investment Model 7.1 The Objective Function 7.2 An Example—The Three Investors Again 7.3 An Investment Model with Full Liquidity 7.4 An Adaptive Investment Process with Full Liquidity 7.5 Consideration of the Special Constraint 7.6 The Multivalued Payoff Adaptive Investment ProcessChapter 8 Multiactivity Capital Allocation Processes 8.1 Introduction 8.2 The Adaptive Capital Allocation Process 8.3 The Properties of the Adaptive Capital Allocation Process in the Limit ReferencesChapter 9 Economic State Space 9.1 Introduction 9.2 The Concept of an Economic State Space 9.3 Statistical Equilibrium and Enlightenment 9.4 The Subjective Entropy Trajectory 9.5 The Dynamics of the Subjective Entropy Trajectory 9.6 The Economic State Space Representation 9.7 A Digression—^A Likely Value for the Environmental Entropy ReferencesChapter 10 Interactions Between Decision Makers in State Space 10.1 Introduction 10.2 The State Space Probability Function 10.3 Stochastic Equilibrium in the Market 10.4 Interperson Trading in the Investment MarketChapter 11 The Conclusions 11.1 Individual Adaptive Behavior 11.2 Collective Adaptive BehaviorBibliography 1. General Background on Adaptive and Evolutionary Behavior 2. Sources on the Concept of Subjective Probability 3. Sources on the Mathematical Theory of Intelligence 4. Dynamic Programming and Adaptive Control 5. Sources on Investment Theory; mainly on Multi-Project Investment Under Uncertainty 6. Sources on Information Theory 7. Sources on the Concept of Entropy and Entropy-Gradient 8. Sources on Statistical Mechanics and Thermodynamics 9. Sources on Certain Techniques Used in This BookSubject Index