New leads in speculative behavior

Authored by A Kindler, S Bourgeois-Gironde, G Lefebvre, S Solomon

Date Published: 2017

DOI: 10.1016/j.physa.2016.10.028

Sponsors: No sponsors listed

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Model Documentation: Other Narrative

Model Code URLs: Model code not found

Abstract

The Kiyotaki and Wright (1989) (henceforth KW) model of money emergence as a medium of exchange has been studied from various perspectives in recent papers. In the present work we propose a minimalistic model for the behavior of agents in the KW framework, which may either reproduce the theoretical predictions of Kiyotaki and Wright (1989) on the emerging Nash equilibria, or (less closely) the empirical results of Brown (1996), Duffy and Ochs (1999) and our own, introduced in a first part of the present paper. The main import is the systematic computer scanning of speculative monetary equilibria under drastic bounded rationality of agents, based on behavior previously observed in the lab. (C) 2016 Elsevier B.V. All rights reserved.

Tags

Agent-based model exchange Bounded rationality Speculation Agents money games Kiyotaki \& wright