We consider a team of agents with limited problem-solving ability facing a disjunctive task over ... more We consider a team of agents with limited problem-solving ability facing a disjunctive task over a large solution space. We provide sufficient conditions for the following four statements. First, two heads are better than one: a team of two agents will solve the problem even if neither agent alone would be able to. Second, teaming up does not guarantee success: if the agents are not sufficiently creative, even a team of arbitrary size may fail to solve the problem. Third, "defendit numerus": when the agent's problem-solving ability is adversely affected by the complexity of the solution space, the solution of the problem requires only a mild increase in the size of the team. Fourth, groupthink impairs the power of diversity: if agents' abilities are positively correlated, a larger team is necessary to solve the problem.
The article is concerned with the interaction between fully and boundedly rational agents in situ... more The article is concerned with the interaction between fully and boundedly rational agents in situations where their interests are perfectly aligned. The cognitive limitations of the boundedly rational agent do not allow him to fully understand the market conditions and lead him to take non-optimal decisions in some situations. Using categorization to model bounded rationality, we show that the fully rational agent can manipulate information to help decreasing the expected loss caused by the boundedly rational agent. Assuming different types for the boundedly rational agent, who differ only in the categories used, we show that the fully rational agent may learn the type of the boundedly rational agent along their interaction. Using this additional information, the outcome can be improved and the amount of manipulated information can be decreased. Furthermore, as the length of the interaction gets longer the probability that the fully rational agent learns the type of the boundedly rational agent increases.
The ongoing process of deregulation in energy markets changes the market from a monopoly into a c... more The ongoing process of deregulation in energy markets changes the market from a monopoly into a complex one, in which large utilities and independent power producers are no longer suppliers with guaranteed returns but enterprisers which have to compete. This competence has forced utilities to improve their efficiency.
We consider a team of agents with limited problem-solving ability facing a disjunctive task over ... more We consider a team of agents with limited problem-solving ability facing a disjunctive task over a large solution space. We provide sufficient conditions for the following four statements. First, two heads are better than one: a team of two agents will solve the problem even if neither agent alone would be able to. Second, teaming up does not guarantee success: if the agents are not sufficiently creative, even a team of arbitrary size may fail to solve the problem. Third, "defendit numerus": when the agent's problem-solving ability is adversely affected by the complexity of the solution space, the solution of the problem requires only a mild increase in the size of the team. Fourth, groupthink impairs the power of diversity: if agents' abilities are positively correlated, a larger team is necessary to solve the problem.
The article is concerned with the interaction between fully and boundedly rational agents in situ... more The article is concerned with the interaction between fully and boundedly rational agents in situations where their interests are perfectly aligned. The cognitive limitations of the boundedly rational agent do not allow him to fully understand the market conditions and lead him to take non-optimal decisions in some situations. Using categorization to model bounded rationality, we show that the fully rational agent can manipulate information to help decreasing the expected loss caused by the boundedly rational agent. Assuming different types for the boundedly rational agent, who differ only in the categories used, we show that the fully rational agent may learn the type of the boundedly rational agent along their interaction. Using this additional information, the outcome can be improved and the amount of manipulated information can be decreased. Furthermore, as the length of the interaction gets longer the probability that the fully rational agent learns the type of the boundedly rational agent increases.
The ongoing process of deregulation in energy markets changes the market from a monopoly into a c... more The ongoing process of deregulation in energy markets changes the market from a monopoly into a complex one, in which large utilities and independent power producers are no longer suppliers with guaranteed returns but enterprisers which have to compete. This competence has forced utilities to improve their efficiency.
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