Study On Sharing Of Agents' Knowledge Under Bounded Rationality And An Explanation To Different Performance In Transitional Economies

The rapid and sustained economic growth accompanied by the back of liberalization and market-oriented reforms in Russia after 2000 contrasts greatly with it's great economic recession in the 1990s which was accompanied by the liberalization and market-oriented reforms. In contrast with Russia, China, another transitional country, is now attaining its rapid and sustained economic growth since its market-oriented reforms in late 1970s. The traditional theory could not provide a valid interpretation to such complex phenomenon. In this dissertation, I dedicate to analyze the composition and effect of the knowledge held by agents who is constrained by bounded rationality, and the problems in the process to share knowledge between agents in a social economic system. The dissertation analyzes the features of the composition of knowledge held by bounded rational agents, seeks the causes of the differences between knowledge, discusses of the characteristics of knowledge sharing and adjustment. I explain the different transition performance with the theory.Specifically, the paper's main research content and innovation points include the followings.Firstly, the dissertation analyzes an important issue which has been greatly analyzed, how do agents make their decisions in social economic system? Under the constraints of bounded rationality and the necessity of dealing with problems under numerous and complex social economic system environment, the agent can rely on the rule-oriented decision-making which rely on the knowledge or the calculate-oriented decision-making which rely on the consumption of bounded rationality to get the program of dealing with problems. The knowledge held by the bounded rational agents has a crucial role in the decision making process of the rule-oriented decision-making pattern. It helps rule-oriented decision-making to get a result which is quiet the same as the calculate-oriented decision-making.The analysis is able to solve the problem which is argued a lot between the theorists to a certain extent, whether the decision-making of agent is rational or irrational in reality. The research shows that, in the social economic system, the decision-making of agent who is under the constraints of bounded rationality is seemed to be irrational by the pattern of rule-oriented decision-making, but such a decision-making can get a result which is close enough to that of the calculate-oriented decision-making. The knowledge held by agents plays irreplaceable role in such a decision-making process. Secondly, under the guidance of the ultimate goal of backing up decision-making, the dissertation analyzes the features of the knowledge which is thought to be essential and tries to find out the causes of the differences of knowledge between different agents. The research shows that there exits an optimal structure between the knowledge held by bounded rational agents and the decision-making circumstances. In a social economic system, the cause of the difference between knowledge held by agents is due to the different circumstances that the agents live in.The analysis is able to advance the existing knowledge analysis of agents under the constraints of bounded rationality greatly. There have been some opinions of the structural feature of knowledge in the existing theories, but they never find out the specific structural features of knowledge which was settled in this dissertation. The analysis found out the cause of different knowledge held by agents in the same society.Thirdly, the dissertation analyzes the process and features of adjustments and changes of knowledge under the changes of decision-making circumstances. Change is one of the main features of the circumstances in the social system and the change of the decision-making circumstances is the nature of the transitional countries calling transitional. The research shows that, the adjustment of knowledge is viscous for a lot of reasons; the knowledge held by agents will not change timely and effectively according to the change of decision-making circumstances. The viscous feature will make the agent unable to adjust their knowledge to adapt to new environments.Such an analysis can enhance the importance and explanatory power of the research before. Because of the difficulties in the adjustment of knowledge, the bounded rational agent who are widely scattered in different parts of the community, may not be able to adjust their knowledge to adapt to new environments.Fourthly, in a social economic system which is under changing, the overall efficiency not only relies on the decision-making effectiveness of single agents, but also depends on the collaborations between agents of bounded rationality, which will rely on the set up of common knowledge between agents. The research finds out several important parameters which influence the knowledge sharing process between agents.Finally we find out that due to the particularity of knowledge, knowledge can not be spread directly between agents and must rely on coding system.The study formalized some key assumptions of modern transitional economic theory, which consider the parameter of history and the public will affect the transitional performance greatly. Lastly, base on the position that knowledge plays in decision-making of bounded rational agents and the several features of the knowledge sharing between agents in social economic system; the dissertation explains the nature cause of the difference between different transitional countries. As different kinds of resource allocation and decision-making social economic systems, central planned economy and market economy system need different knowledge to match with. The main important factor in the performance of transformation in transitional countries is whether the hierarchy-relied decision-making knowledge can adjust to market-relied decision-making knowledge timely and effectively. The speed and effectiveness of such an adjustment determine the performance of transformation in transitional countries. The data and the test results support the conclusions of this research. The study of this article is able to make up the existing shortage of the explaining power of the existing transition theory.