2012/04/13 by Ian A. Kash, Kash, Ian A., Eric J. Friedman +3
Computer Science · Economics, Econometrics and Finance · #Complex Systems and Time Series Analysis #Computability, Logic, AI Algorithms #Computer Science and Game Theory (cs.GT) #Economic theories and models #FOS: Computer and information sciences
paper · pdf · doi:10.48550/arxiv.1204.2942
openalex publication_date 2012/04/13 · openalex created_date 2025/10/10 · openalex updated_date 2026/08/01
A game-theoretic model of scrip (artificial currency) systems is analyzed. It is shown that relative entropy can be used to characterize the distribution of agent wealth when all agents use threshold strategies---that is, they volunteer to do work iff they have below a threshold amount of money. Monotonicity of agents' best-reply functions is used to show that scrip systems have pure strategy equilibria where all agents use threshold strategies. An algorithm is given that can compute such an equilibrium and the resulting distribution of wealth.