IDEAS home Printed from https://ideas.repec.org/p/arx/papers/2607.00050.html

Revising price coordination in the classical and neoclassical economics based on elementary cellular automata

Author

Listed:
  • Igor Lugo
  • Martha G. Alatriste-Contreras

Abstract

The coordination of prices in economics is one of the most complex phenomena. In particular, the classical and neoclassical approaches related to the economic theory provide some insights into such a complex coordination based on different formulations. However, these formulations have not been successful for explaining simple mechanisms to understand and predict a set of prices that theoretically clears all markets. Consequently, elementary cellular automata can contribute to clarify such a coordination problem by using simple computational rules to describe the theoretical bases of the classical and neoclassical economics. Therefore, we propose to use this type of cellular automata for explaining different escenarios of price coordination in which simple rules of price interactions generate stable and unstable patterns of coordination. We used an explorative data analysis based on the Shannon entropy for computing the uncertainty related to such generated patterns of coordination, and a Monte Carlo simulation approximation based on a Spearman correlation for evaluating the statistical significance of such price coordination. Findings suggested that the classical economics provides a consistent approach for understanding the coordination of prices because it emphasizes human interactions based on logical choices related to an objective data. On the other hand, the neoclassical approach does not propose any type of mechanism for describing the price coordination. The neoclassical individual is just a spectator and receiver of the unpredictable and supposed event of price coordination. As a result, by modeling the economic theory based on computational concepts, we reveal facts and believes behind the classical and neoclassical economics.

Suggested Citation

  • Igor Lugo & Martha G. Alatriste-Contreras, 2026. "Revising price coordination in the classical and neoclassical economics based on elementary cellular automata," Papers 2607.00050, arXiv.org.
  • Handle: RePEc:arx:papers:2607.00050
    as

    Download full text from publisher

    File URL: https://arxiv.org/pdf/2607.00050
    File Function: Latest version
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:2607.00050. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: https://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.