Macroeconomies as Constructively Rational Games

  title={Macroeconomies as Constructively Rational Games},
  author={Ekaterina Sinitskaya and Leigh Tesfatsion},
Real-world decision-makers are forced to be locally constructive; that is, their decisions are necessarily constrained by their interaction networks, information, beliefs, and physical states. This study transforms an otherwise standard dynamic macroeconomic model into an open-ended dynamic game by requiring consumers and firms with intertemporal utility and profit objectives to be locally constructive. Tested locallyconstructive decision processes for the consumers and firms range from simple… CONTINUE READING