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Heterogeneity, Price Discovery and Inequality in an Agent-Based Scarf Economy

Chen, Shu-Heng; Chie, Bin-Tzong; Kao, Ying-Fang; Magerl, Wolfgang and Venkatachalam, Ragupathy. 2017. Heterogeneity, Price Discovery and Inequality in an Agent-Based Scarf Economy. In: Shu-Heng Chen; Ying-Fang Kao; Ragupathy Venkatachalam and Ye-Rong Du, eds. Complex Systems Modeling and Simulation in Economics and Finance. Cham, Switzerland: Springer International Publishing, pp. 113-139. ISBN 9783319996240 [Book Section]

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Abstract or Description

In this chapter, we develop an agent-based Scarf economy with het- erogeneous agents, who have private prices and adaptively learn from their own experiences and those of others through a meta-learning model. We study the factors affecting the efficacy of price discovery and coordination to the Walrasian Equilibrium. We also find that payoff inequality emerges endoge- nously over time among the agents and this is traced back to intensity of choice (a behavioural parameter) and the associated strategy choices. Agents with high intensities of choice suffer lower payoffs if they do not explore and learn from other agents.

Item Type:

Book Section

Departments, Centres and Research Units:

Institute of Management Studies

Dates:

DateEvent
30 November 2016Accepted
1 January 2017Published

Item ID:

19494

Date Deposited:

19 Jan 2017 11:51

Last Modified:

22 Mar 2019 14:37

URI:

http://research.gold.ac.uk/id/eprint/19494

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