2000/12/21 by Anirban Chakraborti, Srutarshi Pradhan, Bikas K. Chakrabarti
Economics, Econometrics and Finance · Physics and Astronomy · #Complex Systems and Time Series Analysis #Market Dynamics and Volatility #Theoretical and Computational Physics #cond-mat.stat-mech #q-fin.TR
paper · pdf · doi:10.1016/s0378-4371(01)00195-9
published as Physica A 297, 253 (2001) · 8 pages, 3 figures (encapsulated postscript)
arxiv created 2000/12/21 · openalex publication_date 2001/08/01 · arxiv updated 2009/11/30 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
We have studied here the self-organising features of the dynamics of a model market, where the agents `trade' for a single commodity with their money. The model market consists of fixed numbers of economic agents, money supply and commodity. We demonstrate that the model, apart from showing a self-organising behaviour, indicates a crucial role for the money supply in the market and also its self-organising behaviour is seen to be significantly affected when the money supply becomes less than the optimum. We also observed that this optimal money supply level of the market depends on the amount of `frustration' or scarcity in the commodity market.