The origin of money: an agent-based model
The origin of money: an agent-based model
The benefits of money as a medium of exchange are obvious, but the historical origin of money is less clear. An existing economic model of monetary search is reproduced as an agent based simulation and an evolutionary algorithm is used to model social learning. This approach captures the way in which different equilibria can arise, including solutions in which one or two goods come to be used as money. In the case where monetary goods have identical properties, multiple equilibria can be reached with a dependence on the starting beliefs of agents. In our analysis we also consider the evolutionary dynamics that allow for a small chance of mutations in strategies. In some cases our findings show evolutionary paths by which use of particular monetary goods can collapse.
Moran, Timothy
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Brede, Markus
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Ianni, Antonella
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Noble, J.
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September 2013
Moran, Timothy
88c83be7-1522-4611-94f9-68cdcbd882bf
Brede, Markus
bbd03865-8e0b-4372-b9d7-cd549631f3f7
Ianni, Antonella
35024f65-34cd-4e20-9b2a-554600d739f3
Noble, J.
440f07ba-dbb8-4d66-b969-36cde4e3b764
Moran, Timothy, Brede, Markus, Ianni, Antonella and Noble, J.
(2013)
The origin of money: an agent-based model.
ECAL 2013, Taormina, Italy.
8 pp
.
Record type:
Conference or Workshop Item
(Paper)
Abstract
The benefits of money as a medium of exchange are obvious, but the historical origin of money is less clear. An existing economic model of monetary search is reproduced as an agent based simulation and an evolutionary algorithm is used to model social learning. This approach captures the way in which different equilibria can arise, including solutions in which one or two goods come to be used as money. In the case where monetary goods have identical properties, multiple equilibria can be reached with a dependence on the starting beliefs of agents. In our analysis we also consider the evolutionary dynamics that allow for a small chance of mutations in strategies. In some cases our findings show evolutionary paths by which use of particular monetary goods can collapse.
Text
Origin_of_Money.pdf
- Accepted Manuscript
More information
Published date: September 2013
Venue - Dates:
ECAL 2013, Taormina, Italy, 2013-09-02
Organisations:
Economics
Identifiers
Local EPrints ID: 355014
URI: http://eprints.soton.ac.uk/id/eprint/355014
PURE UUID: d0b8c967-953b-43f3-9c9f-aa8ee59e5316
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Date deposited: 14 Aug 2013 13:47
Last modified: 15 Mar 2024 02:51
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Contributors
Author:
Timothy Moran
Author:
Markus Brede
Author:
J. Noble
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