Capital flow in a two-component dynamical system

Abstract

A model of open economics composed of producers and speculators is investigated by numerical simulations. The capital flows from the environment to the producers and from them to the speculators. The price fluctuations are suppressed by the speculators. When the aggressivity of the speculators grows, there is a transition from the regime with almost sure profit to a very risky regime in which very small fraction of speculators have stable gain. The minimum of price fluctuations occurs close to the transition.PACS numbers: 05.40.-a, 89.90.+n

Harms and benefits from social imitation

“…We would like to stress especially the attempts to go back to the economic motivations of MG and model the market mechanisms [10][11][12][13].…”

Dynamical spin-glass-like behavior in an evolutionary game

“…It was found, that the properties of the game depend on the memory length M and number of players N through the scaling variable α = 2 M /N [4,6,7]. The Minoriry game was thoroughly studied both numerically and analytically [8][9][10][11][12][13][14][15][16][17][18][19] along with the study of the original bar attendance problem [20,21] and various modifications of the Minority game [22][23][24][25][26][27][28][29] An important role is attributed to the observation that the dynamics of the memorized pattern and the strategies' scores are in certain regimes decoupled [30][31][32] and that the thermal noise can ge introduced in the players' decisions [33][34][35].…”

“…The situation is somewhat different in the bar attendance model [20,21], where the optimal attendance is set from outside. There are also variants of thge game, in which the players can decide to participate or not, depending on their accumulated wealth [27,39]. The number of players who influence the outcome of the game can thus vary in time.…”

Diversity of scales makes an advantage: The case of the Minority Game

“…Perhaps the most deeply studied is the variant with two types of agents, called producers and speculators [12,13,14]. The market ecology which emerges, shows fairly clearly that the two groups need each other to gain better efficiency.…”