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New Economic Windows


Collective learning in the context of binary choice for a community sharing past knowledge and intending to be in the minority choice side in successive attempts had been modeled by Arthur [6]. The model, called El Farol Bar problems, is defined as follows: A fixed number of people want to go to the Bar in every Thursday evening (special musical attraction). However the bar is small, and it is no fun to go there when it is too crowded. The preferences of the population are described as follows: If ‘less than 60\% of the population’ go to the bar, people coming to the bar would feel better than if they stayed at home. If more than that fraction of population go to the bar, they would feel uncomfortable and would repent that they did not stay back at home. Everyone has to decide ‘at the same time’ on each Thursday evening, whether he or she will go to the bar or not; they cannot of course wait to see how many others intend go to the bar before deciding to go himself or herself on every Thursday evening.

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