Keizer Karelplein 19
6211 TC, Maastricht
The Netherlands



Research Interests

If I would have tried to put my research interests in two words, they would be HETEROGENEOUS AGENTS. Empirical evidence and theoretical arguments are mounting against the main actor of the mainstream neoclassical economics: the representative agent!

Starting from the studying the pricing decisions of heterogeneous producers as my master thesis topic at Central European University, I went to study the decisions of heterogeneous consumers and their effects on market dynamics as my PhD research topic at Maastricht University.

Besides mere heterogeneity, consumers have many other interesting features (e.g. interdependence, changes in tastes and other evolutionary properties) which are becoming central to my PhD thesis.

My PhD thesis ("Five Essays on Economies with Heterogenous Interacting Consumers") consists of two parts. One is concerned with the behavior of R&D performing firms with heterogenous sets of information. There I analyze the process of horizontal innovation on firm growth and ultimate firm size distributions, as well as the effects of consumer interaction on innovation incentives. The other part models consumer choice process in multi-product environments. Here I model heterogenous consumers learning from own consumption experience and from interaction with other consumers through social networks. The thesis in total contributes to the understanding of the effects of consumer heterogeneity, interaction and learning processes on the organization of various economic activities (i.e. innovation, advertising, consumption).


Research Output

In edited vlume

  • Babutsidze Z. (2010) Consumer Interaction: Effects on Aggregate Outcomes. in "Applied Evolutionary Economics, Behavior and Organizations," Buenstorf G. (ed.), Edward Elgar, forthcoming.

Under Review

  • R&D Behavior and the Emergence of Fat Tailed Firm Size Distributions

    • UNU-MERIT working paper, No: 2009-056 [download]

  • Real Word-Of-Mouth Interaction and Organization of Behavior (with R. Cowan)

    • Earlier versions circulated as:

      1. Inertia, Interaction and Clustering in Demand, UNU-MERIT working paper, No: 2009-045, [download]

      2. Habit Formation, Information Exchange and Social Geography of Demand, UNU-MERIT working paper, No: 2008-047 [download]

  • Returns to Product Promotion when Consumers are Learning How to Consume

    • Earlier versions circulated as:

      1. Learning How to Consume and Returns to Product Promotion, Papers on Economics and Evolution, No: 2009-05, Max Plank Institute of Economics, Evolutionary Economics Group [download]

      2. Learning How to Consume and Returns to Product Promotion, UNU-MERIT working paper, No: 2009-018 [download]

  • On the Performance of the Representative Agent

    • Manuscript, Maastricth University [download]

  • (S,s) Pricing: Does the Heterogeneity Wipe Out the Asymmetry on Micro Level?

    • UNU-MERIT working paper, No: 2006-033. [download]

Work in progress

  • Consumer Interaction and Innovation Incentives

  • Missing Parts in Political Spectrum: Effects on Functionality of Political Decision-Making (with N. Timus)

  • The Tradeoff between Process and Product Innovation: Effects on Economic Growth (with M. Valente)


Seminars and Conferences

Seminars given

  • @ GREThA at University Montesquieu Bordeaux IV, Brodreaux (France). February, 2010.

  • @ ISET at Tbilisi State University, Tbilisi (Georgia). December, 2008.

  • @ URU at University of Utrecht, Utrecht (The Netherlands). November, 2008.

  • @ Max Planck Institute of Economics, Jena (Germany). April, 2008.

Conferences and Workshops

  • Research and Entrepreneurship in Knowledge-Based Economy 2009: Bocconi University, Milan (Italy).

  • Conference on Economic Design 2009: Maastricht University, Maastricht (The Netherlands).

  • European Meeting on Applied Evolutionary Economics 2009: Jena (Germany).

  • Annual Meeting of Eastern Economic Association 2009: New York (USA).

  • International Conference on Computing In Economics and Finance 2008: University of Sorbonne, Paris (France).

  • DIME Scientific Conference 2008: Universite Louis Pasteur, Strasbourg (France).

  • Econophysics Colloquium 2007: Technical University of Marche, Ancona (Italy).

  • Agglomeration and Growth in Knowledge-Based Economies 2007: Kiel Institute of World Economy, Kiel (Germany).

  • International Conference on Economic Science with Heterogeneous Interacting Agents 2006: University of Bologna, Bologna (Italy).

Summer schools and other training

  • SBP 2010: Social Computing, Behavioral Modeling and Prediction, National Institutes of Health, Bestheda MD (USA).

  • ESSID 2009: European Summer School on Industrial Dynamics, Autonomous University of Barcelona, Barcelona (Spain).

  • DIMETIC 2007-Maastricht: Modeling, Systems and Dynamics, UNU-MERIT, Maastricht (The Netherlands).

  • Summer School in Economic Theory 2007: Economic Aspects of Communication and Information, Institute of Advanced Studies, Hebrew University, Jerusalem (Israel).

  • European Summer University 2006: From Innovation Towards Industrial Production, Cherbourg School of Engineering, Cherbourg (France).

  • Doctoral Training Course 2006: Economic Evolution as Learning Process, Max Planck Institute of Economics, Jena (Germany).