Boom and bust in continuous time evolving economic model

Graeme Ackland, Lawrence Mitchell

Research output: Contribution to journalArticlepeer-review

Abstract

We show that a simple model of a spatially resolved evolving economic system, which has a steady state under simultaneous updating, shows stable oscillations in price when updated asynchronously. The oscillations arise from a gradual decline of the mean price due to competition among sellers competing for the same resource. This lowers profitability and hence population but is followed by a sharp rise as speculative sellers invade the large un-inhabited areas. This cycle then begins again.

Original languageEnglish
Pages (from-to)567-573
Number of pages7
JournalThe European Physical Journal B
Volume70
Issue number4
DOIs
Publication statusPublished - Aug 2009

Keywords

  • BUSINESS-CYCLE
  • LIFE
  • EQUILIBRIUM
  • COOPERATION
  • EVOLUTION

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