Evolution of economic entities under heterogeneous political/environmental conditions within a Bak–Sneppen-like dynamics

Abstract

A model for economic behavior, under heterogeneous spatial economic conditions is developed. The role of selection pressure in a Bak-Sneppen-like dynamics with entity diffusion on a lattice is studied by Monte-Carlo simulation taking into account business rule(s), like enterprise -enterprise short range location "interaction"(s), business plan(s) through spin-offs or merging and enterprise survival evolution law(s). It is numerically found that the model leads to a sort of phase transition for the fitness gap as a function of the selection pressure.

Influence of Information Flow in the Formation of Economic Cycles

“…The problem has been studied also by means of sociology technics [11], showing that changes of opinions about recession or prosperity undergo drastic changes from one equilibrium to another, both having fluctuations in stochastically resonant systems. In the present investigation, an information flow, typical of economy systems, has been incorporated into the ACP model [3,4,5]. 'This has led to observe In the case of short delay time t d ∈ (2 IS, 4 IS), between data acquisition and policy implementation by a company, the system evolves toward a unique stable equilibrium state.…”

“…The model was set in the form of a Monte Carlo simulation. Notice that the ACP model [3,4,5] contains among its variants an adaptation of the Bak -Sneppen model and was built in order to answer economy questions 3 . The model consists of 1. space -a square symmetry lattice, 2. companies, which are initially randomly placed on the lattice, in an 3. environment characterised by a real field F ∈ [0, 1] and a selection pressure sel, 4. each company (i) is characterised by one real parameter f i ∈ [0, 1] (so called its fitness).…”

A (reactive) lattice-gas approach to economic cycles

“…(1) some equilibrium between births and deaths; (2) the concentration c t can be maximal (P 1 ) or reach a finite value (P 2 ) (because in the latter, more Darwinian case, case the best adapted companies can never die); (3) the regions where field gradients exist are prone to instabilities at least [25] in case P 2 ; (4) the economic ("external") field implies stable or unstable density distributions (whence "cycles") ; (5) the diffusion process rule(s) are useful for invasion process, but are also relevant for replinishing abandoned regions (whence "cycles"); (6) the average fitness is more or less slowly reached according to the selection pressure; (7) the "critical selection pressure" depends on the dynamics chosen (8) the business plan effect is very complex (see next section for analytical work about this).…”

Bak-Sneppen-type models and rank-driven processes

“…applications to evolution modelling [3], economics [4][5][6], and numerical analysis of aspects of BS dynamics such as avalanche statistics and damage spreading [7], computational complexity of the 2 model [8] and so on.…”