An introduction to Genetic Algorithms
In computing, the genetic algorithm (GA) is understood as a really useful optimization technique. It is associated to the bigger category of evolutionary algorithms, which produces solutions to optimization problems using techniques inspired by natural evolution, like inheritance, mutation, selection, and crossover. Genetic Algorithms, originally developed by John Holland (1975) as a simple model of genetic evolution, have swiftly evolved to be used in lots of different areas, including some economic models as well. Up to now, there have been quite a number of publications in this area . In the majority of the papers GA are applied to well known standard economic models, such as cobweb-type models, the prisoner's dilemma, or industrial organization problems. One reason for GA being an attractive tool for economic research has to do with the assumption of a normative behavioural foundation of individual action. In economics this is a very common assumption, and it makes models a...