Using cellular automata on a graph to model the exchanges of cash and goods

  • Authors:
  • Ranaivo Mahaleo Razakanirina;Bastien Chopard

  • Affiliations:
  • University of Geneva, Switzerland;University of Geneva, Switzerland

  • Venue:
  • ACRI'10 Proceedings of the 9th international conference on Cellular automata for research and industry
  • Year:
  • 2010

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Abstract

This paper investigates the behaviors and the properties of a "Give and Take" cellular automaton on a graph. Using an economical metaphor, this model implements the exchange of cash against goods, among the nodes of a graph G, with a local pricing mechanism. During the time evolution of this model, the strongly connected components (SCC) emerge, mimicking the creation of independent sub-markets. In the steady state, each SCC is characterized by a unique price obeying the supply and demand law for that sub-market. We also show that the distributions of cash and goods are proportional to the indegree of the cells, reproducing a Zipf's law of wealth distribution in case of a scalefree graph topology.