Posted by
Robert Howard-2-3 on
Apr 16, 2009; 9:00pm
URL: http://friam.383.s1.nabble.com/Agent-based-market-models-tp2623261p2649014.html
Perhaps complexity is not in the quantity of the agents, but the quantity of
the rules each agent must obey.
So what are the requirements and rules of a free market?
My guess of an incomplete set are:
OBSERVATIONS:
The grass is greener on the other side. If I have an orange tree and you
have an apple tree, at some point I'm going to value your apples more than
my oranges, and you will value my oranges more than your apples.
REQUIREMENTS:
Ownership = Control = the right to trade it. Property rights and its legal
registration must exist. The agents must know who owns what. If two agents
own the same thing, some system must exist to resolve conflicts.
RULES:
1) Right to refuse. One person can propose a trade and another person can
refuse or counter propose. If no trade occurs, neither is worse off. If a
trade does happen, by definition both parties must be happier. No third
party observer is allowed to have an opinion.
2) Trade is honest. If a swap was made under false pretense or any form of
coercion then no trade occurred. The swap must be undone.
Compare these rules to air traffic management.
-----Original Message-----
From:
[hidden email] [mailto:
[hidden email]] On Behalf
Of Jochen Fromm
Sent: Thursday, April 16, 2009 12:53 PM
To: The Friday Morning Applied Complexity Coffee Group
Subject: Re: [FRIAM] Agent-based market models
I found this link on markets today: it says it is precisely the less complex
systems that can be planned and the more complex systems that must develop
spontaneously. Quite paradox.
http://www.libertarianism.org/ex-9.htmlIt says nothing about the invisible hand from Adam Smith, though. Do you
think we have an agent-based model which explains the self-regulating nature
of markets ?
-J.
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