Proceedings of the New York State Economics Association


Dancing with the Bees: Follow-the-Leader Market Dynamics with Robot Firms

William Kolberg

vol. 6, October 2013, p. 99-108


This paper reviews a market experiments designed to capture an information feedback process, and test its effectiveness in leading a market to a profit maximizing market equilibrium when agents do not engage in explicit profit-maximizing decision-making. Instead robot firms adapt to the performance of the top firm in the market, and also to market conditions, in updating their decisions on price and production. We find that the simple information feed-back process leads to profit maximizing market equilibrium in a competitive market with no profit maximization built into the firm-level decision process.


suggested citation:

William Kolberg. "Dancing with the Bees: Follow-the-Leader Market Dynamics with Robot Firms." Proceedings of the New York State Economics Association. vol. 6, October 2013, p. 99-108

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