Agent-based simulations of payoff distribution in economic networks

Abstract

Simulating the behavior of economic agents fosters the analysis of interconnected markets dynamics. Here, we extend the state of the art by adding realistic details to simulating economic exchange networks. To this end, we use our economic network simulation framework TrEcSim, which is designed to support the following real-life features: complex network topologies, evolution of economic agent roles, dynamic creation of new economic agents, diversity in product types, dynamic evolution of product prices, and investment decisions at agent level. By employing simulation, we determine which topological properties promote meritocracy and fairness. Simulation also allows for analyzing the influence of producers and middlemen distribution in the economic exchange network; similarly, we gain valuable insight regarding the distribution of payoff for each agent role. Moreover, we conclude that economic networks promote fairness throughout their structure, namely that the main determining factor for fairness in payoff distribution is the underlying network topology, not agent role assignment.