Self-Organization of Trade Networks in an Economy with Imperfect Infrastructure
AbstractA multi-agent model is proposed for the analysis of self- organization of trade networks. The model takes into account time spent on transactions (`` trade distance). It is shown that the same set of traders may generate trade networks of different structures depending on average trade distance. When the latter is small, the market is near-competitive, trade structures are flat. When trade distance is large, the set of traders exhibit monopolistic behavior, traders sell only to rich consumers, trades are rather large. Under medium trade distance a phase transition and complex dynamics are observed, including significant price oscillations, regular bursts of shortages and long chains of traders. Emergence of trader market strategies such as stabilizing wholesale traders and destabilizing speculators is discovered. The model is studied both analytically and via computer simulations.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Society for Computational Economics in its series Computing in Economics and Finance 1996 with number _022.
Date of creation:
Date of revision:
Contact details of provider:
Postal: Department of Econometrics, University of Geneva, 102 Bd Carl-Vogt, 1211 Geneva 4, Switzerland
Web page: http://www.unige.ch/ce/ce96/welcome.html
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rubinstein, Ariel & Wolinsky, Asher, 1985.
"Equilibrium in a Market with Sequential Bargaining,"
Econometric Society, vol. 53(5), pages 1133-50, September.
- Arial Rubinstein & Asher Wolinsky, 1985. "Equilibrium in a Market with Sequential Bargaining," Levine's Working Paper Archive 623, David K. Levine.
- Evstigneev, I. V. & Taksar, M., 1995.
"Stochastic equilibria on graphs, II,"
Journal of Mathematical Economics,
Elsevier, vol. 24(4), pages 383-406.
- Leigh TESFATSION, 1995.
"How Economists Can Get Alife,"
37, Iowa State University Department of Economics.
- Leigh Tesfatsion, 1998.
"Gale-Shapley Matching in an Evolutionary Trade Network Game,"
Game Theory and Information
9805004, EconWPA, revised 26 Jul 1998.
- Tesfatsion, Leigh S., 1998. "Gale-Shapley Matching in an Evolutionary Trade Network Game," Staff General Research Papers 1230, Iowa State University, Department of Economics.
- Leigh TESFATSION, 1996.
"An Evolutionary Trade Network Game With Preferential Partner Selection,"
38, Iowa State University Department of Economics.
- Tesfatsion, Leigh, 1996. "An Evolutionary Trade Network Game with Preferential Partner Selection," Staff General Research Papers 2047, Iowa State University, Department of Economics.
- Leigh S. Tesfatsion, . "An Evolutionary Trade Network Game with Preferential Partner Selection," Computing in Economics and Finance 1996 _057, Society for Computational Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If references are entirely missing, you can add them using this form.