Neglected Theories of Business Cycle—Alternative Ways of Explaining Economic Fluctuations
The business cycle is a frequent topic in economic research; however, the approach based on individual strategies often remains neglected. The aspiration of this study is to prove that the behavior of individuals can originate and fuel an economic cycle. For this purpose, we are using an algorithm b...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-10-01
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| Series: | Data |
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| Online Access: | https://www.mdpi.com/2306-5729/6/11/109 |
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| author | Klára Čermáková Michal Bejček Jan Vorlíček Helena Mitwallyová |
| author_facet | Klára Čermáková Michal Bejček Jan Vorlíček Helena Mitwallyová |
| author_sort | Klára Čermáková |
| collection | DOAJ |
| description | The business cycle is a frequent topic in economic research; however, the approach based on individual strategies often remains neglected. The aspiration of this study is to prove that the behavior of individuals can originate and fuel an economic cycle. For this purpose, we are using an algorithm based on a repeated dove–hawk game. The results reveal that the sum of output in a society is affected by the ratio of individual strategies. Cyclical changes in this ratio will be translated into fluctuations of the total product of society. We present game theory modelling of a strategic behavioral approach as a valid theoretical foundation for explaining economic fluctuations. This article offers an unusual insight into the business cycle’s causes and growth theories. |
| first_indexed | 2024-03-10T05:34:52Z |
| format | Article |
| id | doaj.art-e2a83ed2e87a456f88140e8c19af4004 |
| institution | Directory Open Access Journal |
| issn | 2306-5729 |
| language | English |
| last_indexed | 2024-03-10T05:34:52Z |
| publishDate | 2021-10-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Data |
| spelling | doaj.art-e2a83ed2e87a456f88140e8c19af40042023-11-22T22:59:34ZengMDPI AGData2306-57292021-10-0161110910.3390/data6110109Neglected Theories of Business Cycle—Alternative Ways of Explaining Economic FluctuationsKlára Čermáková0Michal Bejček1Jan Vorlíček2Helena Mitwallyová3Department of Economics, Prague University of Economics and Business, 130 67 Prague, Czech RepublicFaculty of Mathematics and Physics, Charles University, 110 00 Prague, Czech RepublicDepartment of Economics, Prague University of Economics and Business, 130 67 Prague, Czech RepublicDepartment of Economics, Prague University of Economics and Business, 130 67 Prague, Czech RepublicThe business cycle is a frequent topic in economic research; however, the approach based on individual strategies often remains neglected. The aspiration of this study is to prove that the behavior of individuals can originate and fuel an economic cycle. For this purpose, we are using an algorithm based on a repeated dove–hawk game. The results reveal that the sum of output in a society is affected by the ratio of individual strategies. Cyclical changes in this ratio will be translated into fluctuations of the total product of society. We present game theory modelling of a strategic behavioral approach as a valid theoretical foundation for explaining economic fluctuations. This article offers an unusual insight into the business cycle’s causes and growth theories.https://www.mdpi.com/2306-5729/6/11/109economic fluctuationsstrategic behaviorgrowth theoriesdecision makinggame theory |
| spellingShingle | Klára Čermáková Michal Bejček Jan Vorlíček Helena Mitwallyová Neglected Theories of Business Cycle—Alternative Ways of Explaining Economic Fluctuations Data economic fluctuations strategic behavior growth theories decision making game theory |
| title | Neglected Theories of Business Cycle—Alternative Ways of Explaining Economic Fluctuations |
| title_full | Neglected Theories of Business Cycle—Alternative Ways of Explaining Economic Fluctuations |
| title_fullStr | Neglected Theories of Business Cycle—Alternative Ways of Explaining Economic Fluctuations |
| title_full_unstemmed | Neglected Theories of Business Cycle—Alternative Ways of Explaining Economic Fluctuations |
| title_short | Neglected Theories of Business Cycle—Alternative Ways of Explaining Economic Fluctuations |
| title_sort | neglected theories of business cycle alternative ways of explaining economic fluctuations |
| topic | economic fluctuations strategic behavior growth theories decision making game theory |
| url | https://www.mdpi.com/2306-5729/6/11/109 |
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