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Boom and bust in continuous time evolving economic model

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http://link.springer.com/article/10.1140%2Fepjb%2Fe2009-00243-y
Original languageEnglish
Pages (from-to)567-573
Number of pages7
JournalEuropean Physical Journal B
Volume70
Issue number4
DOIs
StatePublished - Aug 2009

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.

    Research areas

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

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