Computational Model Library

Peter Diamond's Coconut Model (Heterogeneity and Learning) (1.0.0)

An agent-based version of a simple search and barter economy conceived by Peter Diamond in 1982 is presented. The model is also known as Coconut Model. Two MatLab-Scripts provide implementations with heterogeneous and adaptive strategies (learning).

In the model, agents are faced with production decisions that have to be evaluated based on their expectations about the future utility of the produced entity which in turn depends on the global production level via a trading mechanism. While the original dynamical systems formulation assumes an infinite number of homogeneously adapting agents obeying strong rationality conditions, the agent-based setting allows to discuss the effects of heterogeneous and adaptive expectations and enables the analysis of non-equilibrium trajectories.

All model details, mathematical discussions about how the ABM relates to the original Diamond model as well as a series of computational experiments are presented in “Banisch/Olbrich (2016): The Coconut Model with Heterogeneous Strategies and Learning” which is currently under revision for the JASSS special section for Artificial Economics 2015 (AE15).

Release Notes

Associated Publications

Banisch/Olbrich (forthcoming): The Coconut Model with Heterogeneous Strategies and Learning, submitted to JASSS.

Peter Diamond's Coconut Model (Heterogeneity and Learning) 1.0.0

Submitted by Sven Banisch Published May 30, 2016 Last modified Feb 23, 2018
temporal difference learning agent based model agent heterogeneity search equilibrium model model alignment adaptive agents

An agent-based version of a simple search and barter economy conceived by Peter Diamond in 1982 is presented. The model is also known as Coconut Model. Two MatLab-Scripts provide implementations with heterogeneous and adaptive strategies (learning).

In the model, agents are faced with production decisions that have to be evaluated based on their expectations about the future utility of the produced entity which in turn depends on the global production level via a trading mechanism. While the original dynamical systems formulation assumes an infinite number of homogeneously adapting agents obeying strong rationality conditions, the agent-based setting allows to discuss the effects of heterogeneous and adaptive expectations and enables the analysis of non-equilibrium trajectories.

All model details, mathematical discussions about how the ABM relates to the original Diamond model as well as a series of computational experiments are presented in “Banisch/Olbrich (2016): The Coconut Model with Heterogeneous Strategies and Learning” which is currently under revision for the JASSS special section for Artificial Economics 2015 (AE15).

Cite this Model

Sven Banisch, Eckehard Olbrich (2016, May 30). “Peter Diamond’s Coconut Model (Heterogeneity and Learning)” (Version 1.0.0). CoMSES Computational Model Library. Retrieved from: https://www.comses.net/codebases/5045/releases/1.0.0/

Replication of a previously described model

The ABM relates to the theoretical model proposed in:

Diamond, P. A. Aggregate demand management in search equilibrium, The Journal of Political Economy, JSTOR, 1982, 881-894. | Diamond, P. & Fudenberg, D. Rational expectations business cycles in search equilibrium, Journal of political Economy, JSTOR, 1989, 606-619.

Associated Publication(s)

Banisch/Olbrich (forthcoming): The Coconut Model with Heterogeneous Strategies and Learning, submitted to JASSS.

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Contributors
Sven Banisch Eckehard Olbrich
DOI
No assigned DOI
Model Version
1.0.0
License
AFL-3.0
Programming Language
Software Framework
MatLab
Operating System
Operating System Independent
Publish Date
Monday, May 30, 2016
Last Updated
Friday, February 16, 2018
Downloads 261
Peer Review
Unreviewed
Version Submitter First published Last modified Status
1.0.0 Sven Banisch Mon May 30 10:42:06 2016 Fri Feb 16 20:00:21 2018 Published

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