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### Roy E. Murphy

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1st Edition - January 1, 1965

Author: Roy E. Murphy

Editor: Richard Bellman

Language: EnglisheBook ISBN:

9 7 8 - 1 - 4 8 3 2 - 6 4 0 7 - 3

Mathematics in Science and Engineering, Volume 20, Adaptive Processes in Economic Systems demonstrates the usefulness of communications theory, self-adaptive control theory, and… Read more

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Mathematics in Science and Engineering, Volume 20, Adaptive Processes in Economic Systems demonstrates the usefulness of communications theory, self-adaptive control theory, and thermodynamic theory to certain economic processes. This book discusses the common properties of adaptive processes, role of the decision maker, and mixed adaptive processes of the first and second kind. The economic environmental processes, concept of entropy time, and stochastic dynamic economic process are also elaborated. This text likewise covers the investment model with full liquidity, adaptive capital allocation process, and concept of an economic state space. Other topics include the stochastic equilibrium in the market and individual adaptive behavior. This volume is suitable for engineers, economists, and specialists of disciplines related to 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

- No. of pages: 224
- Language: English
- Edition: 1
- Published: January 1, 1965
- Imprint: Academic Press
- eBook ISBN: 9781483264073

RB

Affiliations and expertise

Departments of Mathematics,
Electrical Engineering, and Medicine
University of Southern California
Los Angeles, CaliforniaRM

Affiliations and expertise

DEPARTMENT OF ECONOMICS
STANFORD UNIVERSITY
STANFORD, CALIFORNIA