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Emergent organization in a model market

Yadav, Avinash Chand and Manchanda, Kaustubh and Ramaswamy, Ramakrishna (2017) Emergent organization in a model market. In: PHYSICA A-STATISTICAL MECHANICS AND ITS APPLICATIONS, 482 . pp. 118-126.

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Official URL: https://doi.org/10.1016/j.physa.2017.04.029


We study the collective behaviour of interacting agents in a simple model of market economics that was originally introduced by Norrelykke and Bak. A general theoretical framework for interacting traders on an arbitrary network is presented, with the interaction consisting of buying (namely consumption) and selling (namely production) of commodities. Extremal dynamics is introduced by having the agent with least profit in the market readjust prices, causing the market to self-organize. In addition to examining this model market on regular lattices in two-dimensions, we also study the cases of random complex networks both with and without community structures. Fluctuations in an activity signal exhibit properties that are characteristic of avalanches observed in models of self-organized criticality, and these can be described by power-law distributions when the system is in the critical state. (C) 2017 Elsevier B.V. All rights reserved.

Item Type: Journal Article
Additional Information: Copy right for this article belongs to the ELSEVIER SCIENCE BV, PO BOX 211, 1000 AE AMSTERDAM, NETHERLANDS
Department/Centre: Division of Physical & Mathematical Sciences > Mathematics
Depositing User: Id for Latest eprints
Date Deposited: 11 Aug 2017 10:38
Last Modified: 11 Aug 2017 10:38
URI: http://eprints.iisc.ac.in/id/eprint/57594

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