A MODEL OF INTERACTION BETWEEN INVESTORS AND PRODUCERS IN A TRANSPARENT ECONOMIC SYSTEM

PII
S042473880000485-2-1
DOI
10.31857/S0000485-2-1
Publication type
Article
Status
Published
Authors
Abstract

The paper presents a model of transparent economic system, economic community that consists of investors and producers. There is information exchange between investors and producers. The model describes effective distribution of capital by the investors. Each investor takes into consideration activity of other investors. The investors and producers exchange information about their capital, intentions, and profit; this information is open for all community members. The information exchange makes the possibility to create a decentralized system of interaction within the community of investors and producers. The iterative process is an important element of the model. The iterative process helps each investor to take into account decisions of other investors. The model was investigated by means of computer simulation. The results of computer simulation demonstrate the effective interaction of investors and producers in the economic community. The iterative process was thoroughly investigated. At each iteration, any investor informs producers about its intention to invest a certain capital in one or another producer. Producers take into account these intentions at recalculation of their capitals. It is shown that the iterative process converges after a sufficiently large number of such iterations. It is also shown that the presence of iterations can lead to more effective cooperation in the economic community than similar cooperation, but without iterations.

Keywords
investors, producers, competition, information exchange in economic community, iterative process, decentralized system, collective behavior
Date of publication
01.04.2018
Number of purchasers
8
Views
869

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