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The Economics of the DeLend Project: Agent-based Simulations

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Listed:
  • Frederico Dutilh Novaes
  • Gabriel de Abreu Madeira
  • Aurimar Cerqueira

Abstract

This paper presents our methodology to simulate the behavior of the DeLend Platform. Such simulations are important to verify if the system is able to connect the different sets of agents linked to the platform in a functional manner. They also provide inputs to guide the choices of operational parameters, such as the platform spread, and strategies by DeLend, since they estimate how the key variables of interest respond to different policies. We discuss the methodology and provide examples meant to clarify the approach and to how we intend to use the tool in practice -- they should not be interpreted as representative of real life scenarios.

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  • Frederico Dutilh Novaes & Gabriel de Abreu Madeira & Aurimar Cerqueira, 2023. "The Economics of the DeLend Project: Agent-based Simulations," Papers 2303.03214, arXiv.org, revised Apr 2023.
    • Handle: RePEc:arx:papers:2303.03214
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    References listed on IDEAS

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    1. Ghatak, Maitreesh & Guinnane, Timothy W., 1999. "The economics of lending with joint liability: theory and practice," Journal of Development Economics, Elsevier, vol. 60(1), pages 195-228, October.
    2. Bernard Salanié, 2005. "The Economics of Contracts: A Primer, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262195259, December.
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