Agent-based approach for generation of a money-centered star network

Abstract

The history of trade is a progression from a pure barter system. A medium of exchange emerges autonomously in the market, a position currently occupied by money. We investigate an agent-based computational economics model consisting of interacting agents considering distinguishable properties of commodities which represent salability. We also analyze the properties of the commodity network using a spanning tree. We find that the "storage fee" is more crucial than "demand" in determining which commodity is used as a medium of exchange. (C) 2008 Elsevier B.V. All rights reserved.