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arxiv: nlin/0605023 · v1 · pith:SBSYHFOMnew · submitted 2006-05-10 · 🌊 nlin.AO · nlin.PS

Model of Wealth and Goods Dynamics in a Closed Market

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keywords goodsmarketmoneymodelclosednetworkrulesvariables
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A simple computer simulation model of a closed market on a fixed network with free flow of goods and money is introduced. The model contains only two variables : the amount of goods and money beside the size of the system. An initially flat distribution of both variables is presupposed. We show that under completely random rules, i.e. through the choice of interacting agent pairs on the network and of the exchange rules that the market stabilizes in time and shows diversification of money and goods. We also indicate that the difference between poor and rich agents increases for small markets, as well as for systems in which money is steadily deduced from the market through taxation.

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