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Symbiosis in the Bak–Sneppen model for biological evolution with economic applications

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  • Bartolozzi, M.
  • Leinweber, D.B.
  • Thomas, A.W.

Abstract

In the present work we extend the Bak–Sneppen model for biological evolution by introducing local interactions between species. This “environmental” perturbation modifies the intrinsic fitness of each element of the ecology, leading to higher survival probability, even for the less fit. While the system still self-organizes toward a critical state, the distribution of fitness broadens, losing the classical step-function shape. A possible application in economics is discussed, where firms are represented as evolving species linked by mutual interests.

Suggested Citation

  • Bartolozzi, M. & Leinweber, D.B. & Thomas, A.W., 2006. "Symbiosis in the Bak–Sneppen model for biological evolution with economic applications," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 365(2), pages 499-508.
    • Handle: RePEc:eee:phsmap:v:365:y:2006:i:2:p:499-508
    DOI: 10.1016/j.physa.2005.09.061
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    References listed on IDEAS

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    1. Bak, Per & Chen, Kan & Scheinkman, Jose & Woodford, Michael, 1993. "Aggregate fluctuations from independent sectoral shocks: self-organized criticality in a model of production and inventory dynamics," Ricerche Economiche, Elsevier, vol. 47(1), pages 3-30, March.
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    5. Ausloos, Marcel & Clippe, Paulette & Pȩkalski, Andrzej, 2004. "Evolution of economic entities under heterogeneous political/environmental conditions within a Bak–Sneppen-like dynamics," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 332(C), pages 394-402.
    6. Bartolozzi, M. & Leinweber, D.B. & Thomas, A.W., 2005. "Self-organized criticality and stock market dynamics: an empirical study," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 350(2), pages 451-465.
    7. Takuya Yamano, 2001. "Regulation Effects On Market With Bak–Sneppen Model In High Dimensions," International Journal of Modern Physics C (IJMPC), World Scientific Publishing Co. Pte. Ltd., vol. 12(09), pages 1329-1333.
    8. N. Vandewalle & F. Brisbois & X. Tordoir, 2001. "Non-random topology of stock markets," Quantitative Finance, Taylor & Francis Journals, vol. 1(3), pages 372-374, March.
    9. Nagel, Kai & Herrmann, Hans J., 1993. "Deterministic models for traffic jams," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 199(2), pages 254-269.
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    Cited by:

    1. B. Dupoyet & H. R. Fiebig & D. P. Musgrove, 2010. "Replicating financial market dynamics with a simple self-organized critical lattice model," Papers 1010.4831, arXiv.org.
    2. Dupoyet, B. & Fiebig, H.R. & Musgrove, D.P., 2011. "Replicating financial market dynamics with a simple self-organized critical lattice model," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 390(18), pages 3120-3135.

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