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Simulating the coordination of individual economic decisions

Author

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  • Nowak, Andrzej
  • Kuś, Marek
  • Urbaniak, Jakub
  • Zarycki, Tomasz

Abstract

The model of dynamic social influence is used to describe the coordination of individual economic decisions. Computer simulations of the model show that the social and economic transitions occur as growing clusters of “new” in the sea of old. The model formulated at the individual level may be used to derive another one concerning the aggregate level. The aggregate level model was used to simulate spatio-temporal dynamics of the number of privately owned enterprises in Poland during the transition from centrally governed to the market economy. Analysis revealed the similarity between the model predictions and economic data.

Suggested Citation

  • Nowak, Andrzej & Kuś, Marek & Urbaniak, Jakub & Zarycki, Tomasz, 2000. "Simulating the coordination of individual economic decisions," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 287(3), pages 613-630.
    • Handle: RePEc:eee:phsmap:v:287:y:2000:i:3:p:613-630
    DOI: 10.1016/S0378-4371(00)00397-6
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    References listed on IDEAS

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    1. Schweitzer, Frank & Zimmermann, Jörg & Mühlenbein, Heinz, 2002. "Coordination of decisions in a spatial agent model," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 303(1), pages 189-216.
    2. Anasua Chakraborty & Sujit Sikder & Hichem Omrani & Jacques Teller, 2022. "Cellular Automata in Modeling and Predicting Urban Densification: Revisiting the Literature since 1971," Land, MDPI, vol. 11(7), pages 1-19, July.
    3. Katarzyna Ostasiewicz & Michal H. Tyc & Piotr Goliczewski & Piotr Magnuszewski & Andrzej Radosz & Jan Sendzimir, 2006. "Integrating economic and psychological insights in binary choice models with social interactions," Papers physics/0609170, arXiv.org.

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