Extremely localized interaction in a market model
Authored by Yukio-Pegio Gunji, Kazuto Sasai, Tetsuo Kinoshita
Date Published: 2017
DOI: 10.1007/s10015-016-0334-1
Sponsors:
No sponsors listed
Platforms:
No platforms listed
Model Documentation:
Other Narrative
Mathematical description
Model Code URLs:
Model code not found
Abstract
The model of self-organized criticality (SOC) is a useful tool to
understand the complexity of natural systems in the form of the
artificial life and the artificial market. However, SOC remains the
question what guarantees the criticality even though the natural systems
seem to keep itself in the critical state. In this paper, we focus on
the locality of interaction in zero-intelligence plus (ZIP) model. The
extremely localized interaction changes the behavior of the ZIP model
from equilibrium to intermittency. Although the original ZIP model falls
into unstable with some noise, extremely localized interaction model
archives robust intermittency against the noise parameter. Further, the
statistical property of intermittent behavior shows the power-law
nature.
Tags
Agent-based modeling
Power-law
Zero-intelligence
Market model
Localized interaction