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Proceedings Paper

On the interplay between fluctuations and efficiency in a model economy with heterogeneous adaptive consumers (Invited Paper)
Author(s): Andrea De Martino; Matteo Marsili
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Paper Abstract

We discuss the stationary states of a model economy in which N heterogeneous adaptive consumers purchase commodity bundles repeatedly from P sellers. The system undergoes a transition from an inefficient to an efficient state as the number of consumers increases. In the latter phase, however, price fluctuations may be much larger than in the inefficient regime. Results from dynamical mean-field theory obtained in the 'thermodynamic limit' compare fairly well with computer simulations.

Paper Details

Date Published: 23 May 2005
PDF: 9 pages
Proc. SPIE 5848, Noise and Fluctuations in Econophysics and Finance, (23 May 2005); doi: 10.1117/12.618904
Show Author Affiliations
Andrea De Martino, INFM (Italy)
Univ. degli Studi di Roma, La Sapienza (Italy)
Matteo Marsili, The Abdus Salam ICTP (Italy)


Published in SPIE Proceedings Vol. 5848:
Noise and Fluctuations in Econophysics and Finance
Derek Abbott; Jean-Philippe Bouchaud; Xavier Gabaix; Joseph L. McCauley, Editor(s)

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