Adaptive Learning by Genetic Algorithms

1. Introduction.- 2. Bounded Rationality and Artificial Intelligence.- 2.1 Bounded Rationality in Economics.- 2.2 Artificially Intelligent Agents in Economic Systems.- 2.3 Learning Techniques of Artificially Intelligent Agents.- 2.3.1 Genetic Algorithms and Related Techniques.- 2.3.2 Classifier Systems.- 2.3.3 Neural Networks.- 2.3.4 Cellular Automata.- 2.4 Some Applications of CI Methods in Economic Systems.- 2.4.1 Bidding Strategies in Auctions.- 2.4.2 The Iterated Prisoner's Dilemma.- 2.4.3 Market Models.- 2.4.4 Further Simple Economic Models.- 2.5 Potentiality and Problems of CI Techniques in Economics.- 3. Genetic Algorithms.- 3.1 What are Genetic Algorithms?.- 3.2 The Structure of Genetic Algorithms.- 3.3 Genetic Operators.- 3.3.1 Selection.- 3.3.2 Crossover.- 3.3.3 Mutation.- 3.3.4 Other Operators.- 3.3.5 An Example.- 3.4 Genetic Algorithms with a Non-Standard Structure.- 3.5 Economic Interpretation of Genetic Learning.- 3.6 Some Analytical Approaches to Model Genetic Algorithms.- 3.6.1 The Schema Theorem.- 3.6.2 The Quantitative Genetics Approach.- 3.6.3 Markov Chain Models.- 4 Genetic Algorithms with a State Dependent Fitness Function.- 4.1 State Dependency in Economic Systems.- 4.2 A Markov Model for Systems with a State Dependent Fitness Function.- 4.3 The Difference Equations Describing the GA.- 4.4 Deviation from the Markov Process.- 4.5 A Numerical Example.- 4.6 Stability of the Uniform States.- 4.7 Two-Population Models.- 5 Genetic Learning in Evolutionary Games.- 5.1 Equilibria and Evolutionary Stability.- 5.2 Learning in Evolutionary Games.- 5.3 Learning by a Simple Genetic Algorithm.- 5.3.1 Rock-Scissors-Paper Games.- 5.3.2 A GA Deceptive Game.- 5.3.3 Learning in Non Deceptive Games.- 5.4 Two-Population Contests.- 6 Simulations with Genetic Algorithms in Economic Systems.- 6.1 A Model of a Competitive Market.- 6.1.1 Pure Quantity Decision.- 6.1.2 Exit and Entry Decisions.- 6.2 An Overlapping Generations Model with Fiat Money.- 6.2.1 Learning of Cyclical Equilibria.- 6.2.2 Learning of Sunspot Equilibria.- 7 Stability and Encoding.- 7.1 The Cobweb Example Revisited.- 7.2 Impact of a Change in Encoding and Scaling.- 7.3 A Method for Finding Economic Equilibria.- 8 Conclusions.- A. Basic Definitions and Results Used.- A.1 Time Homogeneous Markov Chains.- A.2 Nonlinear Difference Equations and Stability.- B. Calculation of the Equilibria of the Evolutionary Games in Chapter 5.- B.1 Rock-Scissor-Paper Games.- B.2 The GA Deceptive Game GAD.- B.3 The Games G1 and G2.- References.- List of Figures.- List of Tables.