Market economy dynamic system

I’ve been thinking about creating JavaScript 2D simulations on this blog for awhile. It’s such a simple language, and nowadays computers/browsers can keep up with drawing OK graphics without too much work from the programmers side.

Anyway, today I read a description of how competition between companies in a market work, and how it tends towards monopoly. Monopoly is an ’emergent behaviour’ in the ‘dynamic system of competition’, as a teacher of Dynamic Systems Theory might have put it.

I don’t have time to implement this experiment/visualization/simulation just now, but I drew a picture (above) to remind myself how it would work.

The idea is that of a two dimensional “field in which “organisms” move around, looking for the “sun“:

  • The field represents “the market”. Different locations represents different “products”.
  • The sun represents people buying stuff in the market – what things are popular for the moment.
  • The organisms represents companies, and what kind of product they produce (their location).

The sun moves randomly, eg. along line segments, at some certain speed.

The companies also move randomly, but the speed is defined by the size of the company. The size is also a measure of how much “resources” it has (money simply put).

When companies/organisms bumb into each other, they fight. The winner is determined by a random number game, the bigger company has more chances of winning. A is the winner if RND(0,A+B) <= A. The resources from the loser is consumed by the winner, and the loser disappears.

Companies close to the sun gain resources. Companies far away from the sun lose resources at a constant pace.

New companies should be created continously (at a certain pace), with a predetermined size and random location.

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