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Genetic Algorithms In Economics
Genetic algorithms have increasingly been applied to economics since the pioneering work by John H. Miller in 1986. It has been used to characterize a variety of models including the cobweb model, the overlapping generations model, game theory, Genetic algorithm scheduling, schedule optimization and asset pricing. Specifically, it has been used as a model to represent learning, rather than as a means for fitting a model. Genetic algorithm in the cobweb model The cobweb model is a simple supply and demand model for a good over ''t'' periods. Firms (agents) make a production quantity decision in a given period, however their output is not produced until the following period. Thus, the firms are going to have to use some sort of method to forecast what the future price will be. The GA is used as a sort of learning behaviour for the firms. Initially their quantity production decisions are random, however each period they learn a little more. The result is the agents converge within ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Genetic Algorithm
In computer science and operations research, a genetic algorithm (GA) is a metaheuristic inspired by the process of natural selection that belongs to the larger class of evolutionary algorithms (EA). Genetic algorithms are commonly used to generate high-quality solutions to optimization and search problems via biologically inspired operators such as selection, crossover, and mutation. Some examples of GA applications include optimizing decision trees for better performance, solving sudoku puzzles, hyperparameter optimization, and causal inference. Methodology Optimization problems In a genetic algorithm, a population of candidate solutions (called individuals, creatures, organisms, or phenotypes) to an optimization problem is evolved toward better solutions. Each candidate solution has a set of properties (its chromosomes or genotype) which can be mutated and altered; traditionally, solutions are represented in binary as strings of 0s and 1s, but other encod ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |