The Agent-Based Model of the Closed Market of the One Commodity with Finite Automata as Participants of the Market

Voronovitsky, Mark (2015): The Agent-Based Model of the Closed Market of the One Commodity with Finite Automata as Participants of the Market.

Abstract

The model of market of one commodity , in which there is in each moment of time the same quantity of goods and the same quantity of money was formulated and researched in this paper. Each partner of the market in the one moment of time can be in one of three status: to be buyer, be seller and do not take part in trade in this moment of time. Partners of market change their statuses and prices, by using the personal information of each of them about trade in the previous moment of time only.. The nature of dynamics of the set of prices of participants was investigated analytically.. The central result of the investigation is the using some finite automata with two action(careful and risky) as a model of a participant of market. The convergence of trajectory of our system to stationary set of states with average price of trade which is close to some constant when behavior of all agent is careful and bounded hesitation of this trajectory when there are risky agents only. These facts are established by series of experiments with computer realization of the model. in the cases when all agents can fulfil only one kind of action and when all agents are identical simple determinate automata with linear tactic with careful and risky actions.. Some cases of the herd behavior of participants were considered in this investigation. We investigate our agent based models first of all as models of trade, but it will be useful to note that these models are example of some complicated self-adjusting systems also. This work was fulfiled by me only.I certify that I have the right to deposit the contribution with MPRA

• Item Type: MPRA Paper
• Language: English
• Keywords: mathematical model, closed market, one commodity market, dynamics of prices, trajectory, stationary set, steady state, rational choice.
• Subjects: D - Microeconomics > D4 - Market Structure, Pricing, and Design > D49 - Other

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