The Desirable Organizational Structure for Evolutionary Firms in Static Landscapes

In addition to the common analysis of the Kauffman NK model where the value of K and the structure of interaction is given, the aim of this paper is to study what would be the values of these two parameters if they were endogenized. Thus, a model is proposed where firms and business schools coordinate to search for high peaks in their respective landscapes using evolutionary algorithms. The main result coming out from the analysis of the model is that agents, using evolutionary algorithms, attempt to simplify the problems of coordination and this, over time, produces the existence in the economy of agents using many different strategies. (JEL-code: C61, C63, D21, D23)