This article presents an agent-based model of an Italian textile district where thousands of small firms specialise in particular phases of fabrics production. It is an empirical model that reconstructs the communications between firms when they arrange production chains. In their turn,...

We compare price dynamics of different market protocols (batch auction, continuous double auction and dealership) in an agent-based artificial exchange. In order to distinguish the effects of market architectures alone, we use a controlled environment where allocative and informational issues...

A simple agent-based model of business units lending money to one another is sufficient to understand on what conditions avalanches of bankruptcies may arise. The model highlights the consequences of specialisation into money lending as well as the impact of preferential lending relations.

The $-Game was recently introduced as an extension of the Minority Game. In this paper we compare this model with the well know Minority Game and the Majority Game models. Due to the inter-temporal nature of the market payoff, we introduce a two step transaction with single and mixed group of...

In this paper, we examine an agent-based model, and an equation-based model in the form of a mean field model. We show how the mean field model is a small, fast model that identifies the high level properties of a subject, in this case financial time series’ stylized facts. The agent based...

Chartist and fundamentalist models have proven to be capable of replicating stylized facts on speculative markets. In general, this is achieved by specifying nonlinear interactions of otherwise linear asset price expectations of the respective trader groups. This paper investigates whether or...

This article considers the implications of complex systems models for the study of economics and the evaluation of public policies. I argue that complexity can enhance current approaches to formal economic analysis, but does so in ways that complement current approaches. I further argue that...

We extend Kirman’s model by introducing variable event time scale. The proposed flexible time scale is equivalent to the variable trading activity observed in financial markets. Stochastic version of the extended Kirman’s agent based model is compared to the non-linear stochastic models of...

The Peter Principle is a theory that provides a paradoxical explanation for job incompetence in a hierarchical organisation. It argues that should staff be competent at a given level, their competence may not be implicit at higher levels due to the differences in the skill set required....