Humans trade in order to obtain either what is needed, or to obtain
what they think that other people need: They trade for need or for
greed. This is simulated by this hugely simplified model of human
activity in a market with many different product types.
Only trade of one product for one product is allowed. The agents
also have a memory where they keep information about what other
agents asked for in earlier encounters. At each step a given agent
wants either what he does not have, or something that their memory
tell them is desirable. As a result there is a positive feedback for
the desirability of a given product among the agents.
In the applet we show the fraction of the total memory of all agents
which are allocated to the respective products (each shown with a
different color). This memory allocation is identified as the value
of the corresponding product. This is because it is associated to
the chance that somebody will accept it in a given trade. This value
show persistent fluctuations where sometimes everybody agrees that a
given product is highly desirable.
Donangelo and K. Sneppen, "Self
organization of value and demand", Physica A 276 (2000) 572.
R. Donangelo, A. Hansen, K. Sneppen \& S. Souza, "
Physics of Fashion Fluctuations", Physica A, 287, 539 (2000).
R. Donangelo and K. Sneppen,
"Cooperativity in a trading model with memory and production"
Physica A 316 581-591 (2002).