A C++ Platform for the Evolution of Trade Networks

  • Authors:
  • David McFadzean;Leigh Tesfatsion

  • Affiliations:
  • Kumo Software Corporation, 1400, 520-5th Avenue S.W., Calgary, AB T2P 3R7, Canada E-mail: david@kumo.com;Kumo Software Corporation, 1400, 520-5th Avenue S.W., Calgary, AB T2P 3R7, Canada

  • Venue:
  • Computational Economics - Special issue on programming languages
  • Year:
  • 1999

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Abstract

This paper presents a general C++ platformfor the implementation of a trade network game (TNG) thatcombines evolutionary game play with preferential partner selection.In the TNG, successive generations of resource constrained traderschoose and refuse trade partners on the basis of continually updatedexpected payoffs, engage in risky trades modelled as two-persongames, and evolve their trade strategies over time. The modulardesign of the TNG platform facilitates experimentation withalternative specifications for market structure, trade partnermatching, trading, expectation formation, and trade strategyevolution. The TNG platform can be used to study the evolutionaryimplications of these specifications at three different levels:individual trader attributes, trade network formation, and socialwelfare.