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Diffusion of knowledge and the state lottery society

Mon April 8th 2024, 4:00pm
Sequoia 200
Lenya Ryzhik, Stanford Math

Diffusion of knowledge models in macroeconomics describe the evolution of an interacting system of agents who perform individual Brownian motions (this is internal innovation) but also can jump on top of each other (this is an agent or a company acquiring knowledge from another agent or company). The learning strategy of the individual agents (jump probabilities) are obtained from an additional optimization problem that involves the current configuration of particles and is a solution to a forward-backwards in time mean-field game. We will discuss some preliminary results on the basic properties of this system.