EVOLUTION OF ECONOMIC ENTITIES CONTROLLED BY INTERACTING AGENTS UNDER VARYING SPATIO-TEMPORAL ECONOMIC CONDITIONS

Marcel AUSLOOS1 & Paulette CLIPPE1 Janusz MISKIEWICZ2 & Andrzej PEKALSKI2
SUPRATECS, B5, University of Lige, Euroland 2 Institute of Theoretical Physics, University of Wroclaw, Poland
1

REFERENCES (published work) (1)

+ M.Ausloos, P.Clippe, and A.Pekalski, "Simple model for the dynamics of correlation in the evolution of economic entities under varying economic conditions", Physica A, 324 (2003) 330-337 (http://arXiv.org/abs/nlin/0210041)

+ M. Ausloos, P. Clippe and A. Pekalski, "Evolution of economic entities under heterogeneous political/environmental conditions within a Bak-Sneppen-like dynamics", Physica A 332 (2004) 394-402 (http://arXiv.org/abs/physics/0309007)
+ J. Miskiewicz and M. Ausloos, "A logistic map approach to economic cycles. (I). The best adapted companies", Physica A 336 (2004) 206-214 (http://arXiv. org/abs/cond-mat/0401147)

REFERENCES (published work) (2)

+ M. Ausloos, P. Clippe and A. Pekalski, "Model of macroeconomic

evolution in stable regionally dependent economic fields", Physica A 337 (2004) 269-287. (http://arXiv. org/abs/cond-mat/0401144)

+ M. Ausloos, J. Miskiewicz, and M. Sanglier, "The durations of recession and prosperity: does their distribution follow a power or an exponential law?", Physica A 339 (2004) 548-558 (http://arXiv.org/abs/cond-mat/0403143)
+ M. Ausloos, P. Clippe, J. Miskiewicz, and A. Pekalski, "A (reactive) lattice-gas approach to economic cycles", Physica A 344 (2004) 1-7 (http://arXiv.org/abs/cond-mat/0402075)

Table of content

Title and references General considerations Basic model

Parameters Results : concentration, fitness, cycles,

Cases of best fitted companies

Cycles and chaos

Cases of delayed policy implementation

Cycles and chaos

Considerations

Delocalization & globalization processes! Time and space varying economic conditions? Berlin wall effect : change in volume Role of agent interactions :
connect macro-economy to micro-model

Economic cycles ? Chaotic behaviours? Control parameters

(initial) Model

The world is a lattice with square symmetry With different (all equal in size) regions : 3 ! West : wonderful ! Exist company concentration c Each company is a scalar number f : [0,1] If not fit w.r.t. (s; F) => company disappears Companies must move : one step at a time and interact Business plan b: merging or creating spin-off
N.B. Berlin wall effect : change in volume

Algorithm

Choose initial concentration c(0) in I, II, III Give some random f value to each company Check if company survives under conditional probability

If company can move, move it Look for partner : merge with probability b create spin off with probability 1-b

Parameters

lattice type (could be off-lattice treatment) region sizes and numbers initial concentrations company is defined by one scalar number f !!!!! selection pressures s (and sequences) local field constraints F (and sequences) types of motion (and sequences) types of company interactions (and sequences) business plan priorities b !!! (and sequences) evolution equations for f (and sequences)