Development of the Market Paradigm for Analyzing Systems

The economy is heterogeneous, complex, dynamic, interdependent and interactive. This new market paradigm developed for analyzing economic behaviors gives a holistic analysis of the system by employing the Behavioral Systems Approach, Cobweb Theorem and Evolutionary Game Theory in obtaining the operating characteristics of the system through the derivation of motivation, appreciation and inertia which give the information for universal differences in the economic system. These three indices reveal, through the six marketing scenarios generated, the dynamic process that governs the evolution of the individual behavior inherent in the system. These results can explain all possible types of behavior inherent in any economic system. The computational method finds application in aggregation of heterogeneous agents, the analysis of cooperation, bounded rationality, interactive particle systems and economics, economic graphs and network theory, etc. It has also been used in analyzing conflict in an agricultural system, understanding stress-strain economics and strategic debt management in systems