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Myong-Hun Chang

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Research

Book

  • A Computational Model of Industry Dynamics

    Routledge (Series: Routledge Advances in Experimental and Computable Economics): January, 2015 [Available at Amazon]

    The study reported in this book attempts to explain many well-documented aspects of the evolution of industries over time. It uses an agent-based computational model in which artificial industries are created and grown to maturity in silico. While the firms in the model are assumed to have bounded rationality, they are nevertheless adaptive in the sense that their experience-based R&D efforts allow them to search for improved technologies. Given a technological environment subject to persistent and unexpected external shocks, the computationally-generated industry remains in a perennial state of flux. The main objective of the study is to identify patterns that exist in the movements of firms as the industry evolves over time along the steady state in which the measured behavior of the firms and the industry stochastically fluctuate around steady means. The computational model developed in this book is able to replicate many of the stylized facts from the empirical industrial organization literature, particularly as the facts pertain to the dynamics of firm entry and exit. Furthermore, the model allows examination of cross-industry variations in entry and exit patterns by systematically varying the characteristics of the market and the technological environment within which the computationally-generated industry evolves. The model demonstrates that the computational approach based on boundedly rational agets in a dynamic setting can be useful and effective in carrying out both positive and normative economic analysis.
  • The computational experiments performed in the book are based on the following baseline C++ codes:
    • MagnumSolo.cpp: generation of time series outputs from a single replication
    • MagnumMult.cpp: generation of time series outputs from 500 independent replications
    • The above C++ codes are created using Microsoft Visual Studio Express 2012. The generated outputs (exported from the codes) are then analyzed using Wolfram Mathematica 7.0.
    • If you do not have a C++ compiler, you may view the above codes in the following text files:

Published Works

  • Organizational Theory
    in: Friedrieke Wall, Shu-Heng Chen, and Stephan Leitner, eds., Oxford Handbook of Agent-Based Computational Management Science, New York: Oxford University Press, forthcoming (2024)
    [    PDF copy]
  • Spatial Disparities in Vaccination and the Risk of Infection in a Multi-Region Agent-Based Model of Epidemic Dynamics
    Journal of Artificial Societies and Social Simulation, 26:3 (2023), 3. [doi: 10.18564/jasss.5095] (with Troy Tassier)
    [    Web version: Article]
  • It's Worth a Shot: Urban Density, Endogenous Vaccination Decisions, and Dynamics of Infectious Disease
    Journal of Economic Interaction and Coordination, 18 (2023), 163-189 [https://doi.org/10.1007/s11403-022-00367-4] (with Andrew Souther and Troy Tassier)
    [PDF copy]
  • Spatially Heterogeneous Vaccine Coverage and Externalities in a Computational Model of Epidemics
    Computational Economics, 58 (2021), 27-55 (with Troy Tassier) -- online at https://doi.org/10.1007/s10614-019-09918-7
    [    PDF copy]
    [    Base code for the benchmark experiments 1 and 2 in Wolfram Mathematica 10.4: VaxxSourceCode_Benchmark.nb (PDF copy)]
  • A Dynamic Computational Model of Social Stigma
    Journal of Artificial Societies and Social Simulation, 23:2 (2020), 1. [doi: 10.18564/jasss.4225] (with Joseph E. Harrington, Jr.)
    [PDF copy]
    [    Web version: Article]
  • Computational Industrial Economics: A Generative Approach to Dynamic Analysis in Industrial Organization
    Oxford Handbook of Computational Economics and Finance, S.-H. Chen, M. Kaboudan, and Y.-R. Du, editors, New York: Oxford University Press, 2018, 594-634.
    [PDF copy]
  • Competition Policy
    The Palgrave Encyclopedia of Strategic Management, David J. Teece and Mie Augier, editors, (October 2015)
    [Online] Available at: https://link.springer.com/search?query=Encyclopedia+of+Strategic+Management
    [PDF copy]
  • When Can We Expect a Corporate Leniency Program to Result in Fewer Cartels?
    Journal of Law and Economics, 58 (2015), 417-449. (with Joseph E. Harrington, Jr.)
    [PDF copy: Mathematica Code for the Baseline Simulation]
  • Individual Learning and Social Learning:  Endogenous Division of Cognitive Labor in a Population of Co-evolving Problem-Solvers
    Administrative Sciences, 3 (2013), 53-75. (with Joseph E. Harrington, Jr.)
    [PDF copy]
  • Emergent Social Learning Networks in Organizations with Heterogeneous Agents
    Advances in Complex Systems, 14 (2011), 169-199
    [PDF copy]
  • Entry, Exit, and the Endogenous Market Structure in Technologically Turbulent Industries
    Eastern Economic Journal, 37 (2011), 51-84 [Symposium Issue on Agent-Based Computational Economics]
    [PDF copy]
  • Agent-Based Modeling and Computational Experiments in Industrial Organization: Growing Firms and Industries in silico
    Eastern Economic Journal, 37 (2011), 28-34 [Symposium Issue on Agent-Based Computational Economics]
    [PDF copy]
  • Modelling the Birth and Death of Cartels with an Application to Evaluating Competition Policy
    Journal of the European Economic Association, 7 (2009), 1400-1435. (with Joseph E. Harrington, Jr.)
    [PDF copy]
  • Industry Dynamics with Knowledge-Based Competition:  A Computational Study of Entry and Exit Patterns
    Journal of Economic Interaction and Coordination, 4 (2009), 73-114.
    [PDF copy : Supplement]
  • Innovators, Imitators, and the Evolving Architecture of Problem-Solving Networks
    Organization Science, 18 (2007), 648-666. (with Joseph E. Harrington, Jr.)
    [PDF copy]
  • Decentralization
     International Encyclopedia of Organization Studies, Stewart Clegg and James R. Bailey, editors, Volume 1, pp. 359-362. Thousand Oaks, CA: SAGE Publications (2007)
    [PDF copy]
  • Agent-Based Models of Organizations
    Handbook of Computational Economics II: Agent-Based Computational Economics, Leigh Tesfatsion and Kenneth L. Judd, editors, Elsevier (2006), 1273-1337. (with Joseph E. Harrington, Jr.)
    [PDF copy ]
  • Discovery and Diffusion of Knowledge in an Endogenous Social Network
    American Journal of Sociology, 110 (2005), 937-976. (with Joseph E. Harrington, Jr.)
    [PDF copy]
  • Co-Evolution of Firms and Consumers and the Implications for Market Dominance
    Journal of Economic Dynamics & Control, 29 (2005), 245-276. (with Joseph E. Harrington, Jr.)
    [PDF copy]
  • Organization of Innovation in a Multi-Unit Firm: Coordinating Adaptive Search on Multiple Rugged Landscapes
    Economic Complexity: Non-linear Dynamics, Multi-agents Economies, and Learning, William Barnett, Christophe Deissenberg, and Gustav Feichtinger, eds., International Symposium in Economic Theory and Econometrics, Volume 14, Elsevier, Amsterdam, 2004.(with Joseph E. Harrington, Jr.)
    [PDF copy]
  • Multi-Market Competition, Consumer Search, and the Organizational Structure of Multi-Unit Firms
    Management Science, 49 (2003), 541-552 (Special Issue on "Managing Knowledge in Organizations: Creating, Retaining, and Transferring Knowledge"). (with Joseph E. Harrington, Jr.)
    [PDF copy]
  • Decentralized Business Strategies in a Multi-Unit Firm
    Annals of Operations Research, 109 (2002), 77-98 (Special Issue on "Game Practice"). (with Joseph E. Harrington, Jr.)
    [PDF copy]
  • Centralization vs. Decentralization in a Multi-Unit Organization:  A Computational Model of a Retail Chain as a Multi-Agent Adaptive System
    Management Science, 46 (2000), 1427-1440. (with Joseph E. Harrington, Jr.)
    [PDF copy ]
  • Product Switching Cost and Strategic Flexibility
    Journal of Economics and Management Strategy, 7 (1998), 461-488.
    [PDF copy]
  • Organizational Structure and Firm Innovation in a Retail Chain
    Computational and Mathematical Organization Theory, 3 (1997), 267-288. (with Joseph E. Harrington, Jr.)
    [PDF copy]
  • The Interactive Effect of Product Differentiation and Cost Variability on Profit
    Journal of Economics and Management Strategy, 5 (1996), 175-193. (with Joseph E. Harrington, Jr.)
    [PDF copy]
  • Flexible Manufacturing, Uncertain Consumer Tastes, and Strategic Entry Deterrence
    Journal of Industrial Economics, XLI (1993), 77-90.
    [PDF copy]
  • Intertemporal Product Choice and Its Effects on Collusive Firm Behavior
    International Economic Review, 33 (1992), 773-793.
    [PDF copy]
  • Exclusive Dealing Contracts in a Successive Duopoly with Side Payments
    Southern Economic Journal, 59 (1992), 180-193.
    [PDF copy]
  • The Effects of Product Differentiation on Collusive Pricing
    International Journal of Industrial Organization, 9 (1991), 453-469.
    [PDF copy]
  • The Effects of Irreversible Investment in Durable Capacity on the Incentive for Horizontal Merger
    Southern Economic Journal, 55 (1988), 443-453. (with Joseph E. Harrington, Jr.)
    [PDF copy]

Book Review

  • Review of Game Theory: A Nontechnical Introduction to the Analysis of Strategy (by Roger A. McCain)
    Eastern Economic Journal, 39 (2013), 267-269.
    [PDF copy]

Working Papers

  • A Non-Equilibrium Theory of Merger Waves
    April 2015
    [PDF copy]
  • Cyclical Industrial Dynamics in a Model of Schumpeterian Competition with Fluctuating Demand
    May 2013
    [PDF copy]
  • Muddling through the Gales of Creative Destruction: A Non-Equilibrium Computational Model of Schumpeterian Competition
    September 2012
    [PDF copy]
  • A Note on the Dynamics of Firm Turnovers in the East Liverpool (Ohio) Pottery Industry, 1825-2010
    May 2012 (with Amanda Janosko)
    [PDF copy: Appendix]
  • The Impact of a Corporate Leniency Program on Antitrust Enforcement and Cartelization
    April 2010 (with Joseph E. Harrington, Jr.)
    [PDF copy]
  • Partition and Delegate: A Computational Algorithm for Generating Nested Organizational Hierarchies with a Fixed Number of Tasks
    June 2007
    [PDF copy]
  • Co-Evolution of Firms and Consumers and the Implications for Market Dominance
    Working Paper #23, Center on Social and Economic Dynamics , The Brookings Institution, October 2001. (with Joseph E. Harrington, Jr.)
  • Centralization vs. Decentralization in a Multi-Unit Organization:  A Computational Model of a Retail Chain as a Multi-Agent Adaptive System
    Santa Fe Institute Working Paper Series 00-02-010, 2000. (with Joseph E. Harrington, Jr.)
    [PDF copy ]
  • Chaebols and Big Deals:  Cross-Market Cost-Interdependencies and the Excess Diversification Dilemma in Multi-Market Business Groups
    September 1999
    [PDF copy ]

Source Codes for Projects

  • Spatial Disparities in Vaccination and the Risk of Infection in a Multi-Region Agent-Based Model of Epidemic Dynamics
    (joint with Troy Tassier)

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