New market models challenge traditional equilibrium predictions with fuzzy logic and genetics.
Researchers used fuzzy logic and genetic algorithms to create more realistic models of competitive markets. These models show that markets can reach equilibrium even when firms start trading at different prices. The new equilibria involve agents showing some self-restraint, rather than always acting rationally. This research also explores how collaboration and altruism can evolve in economics, and how these findings can impact public policy. The fuzzy/genetic methodology could be applied to other areas of economics like international trade and development. The study suggests a new concept of rationality for making decisions in complex situations. The research briefly considers the philosophical argument for hands-off economic policies and discusses potential changes in the field of economics.