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Extremely localized interaction in a market model

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Abstract

The model of self-organized criticality (SOC) is a useful tool to understand the complexity of natural systems in the form of the artificial life and the artificial market. However, SOC remains the question what guarantees the criticality even though the natural systems seem to keep itself in the critical state. In this paper, we focus on the locality of interaction in zero-intelligence plus (ZIP) model. The extremely localized interaction changes the behavior of the ZIP model from equilibrium to intermittency. Although the original ZIP model falls into unstable with some noise, extremely localized interaction model archives robust intermittency against the noise parameter. Further, the statistical property of intermittent behavior shows the power-law nature.

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Authors and Affiliations

  1. Research Institute of Electrical Communication, Tohoku University, 2-1-1, Katahira, Aoba-ku, Sendai, 980-8577, Miyagi, Japan

    Kazuto Sasai & Tetsuo Kinoshita

  2. Faculty of Science and Engineering, Waseda University, 3-4-1 Okubo, Shinjuku-ku, Tokyo, 169-8555, Japan

    Yukio-Pegio Gunji

Authors
  1. Kazuto Sasai
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  2. Yukio-Pegio Gunji
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  3. Tetsuo Kinoshita
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Correspondence to Kazuto Sasai.

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Sasai, K., Gunji, YP. & Kinoshita, T. Extremely localized interaction in a market model. Artif Life Robotics 22, 125–129 (2017). https://doi.org/10.1007/s10015-016-0334-1

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  • DOI: https://doi.org/10.1007/s10015-016-0334-1

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