The Price Evolution with Expectations model provides the opportunity to explore the question of non-equilibrium market dynamics, and how and under which conditions an economic system converges to the classically defined economic equilibrium. To accomplish this, we bring together two points of view of the economy; the classical perspective of general equilibrium theory and an evolutionary perspective, in which the current development of the economic system determines the possibilities for further evolution.

The Price Evolution with Expectations model consists of a representative firm producing no profit but producing a single good, which we call sugar, and a representative household which provides labour to the firm and purchases sugar.The model explores the evolutionary dynamics whereby the firm does not initially know the household demand but eventually this demand and thus the correct price for sugar given the household’s optimal labour.

The model can be run in one of two ways; the first does not include money and the second uses money such that the firm and/or the household have an endowment that can be spent or saved. In either case, the household has preferences for leisure and consumption and a demand function relating sugar and price, and the firm has a production function and learns the household demand over a set number of time steps using either an endogenous or exogenous learning algorithm. The resulting equilibria, or fixed points of the system, may or may not match the classical economic equilibrium.

EiLab explores the role of entropy in simple economic models. EiLab is one of several models exploring the dynamics of sustainable economics – PSoup, ModEco, EiLab, OamLab, MppLab, TpLab, and CmLab.

There is a new type of economic model called a capital exchange model, in which the biophysical economy is abstracted away, and the interaction of units of money is studied. Benatti, Drăgulescu and Yakovenko described at least eight capital exchange models – now referred to collectively as the BDY models – which are replicated as models A through H in EiLab. In recent writings, Yakovenko goes on to show that the entropy of these monetarily isolated systems rises to a maximal possible value as the model approaches steady state, and remains there, in analogy of the 2nd law of thermodynamics. EiLab demonstrates this behaviour. However, it must be noted that we are NOT talking about thermodynamic entropy. Heat is not being modeled – only simple exchanges of cash. But the same statistical formulae apply.

In three unpublished papers and a collection of diary notes and conference presentations (all available with this model), the concept of “entropic index” is defined for use in agent-based models (ABMs), with a particular interest in sustainable economics. Models I and J of EiLab are variations of the BDY model especially designed to study the Maximum Entropy Principle (MEP – model I) and the Maximum Entropy Production Principle (MEPP – model J) in ABMs. Both the MEPP and H.T. Odum’s Maximum Power Principle (MPP) have been proposed as organizing principles for complex adaptive systems. The MEPP and the MPP are two sides of the same coin, and an understanding of their implications is key, I believe, to understanding economic sustainability. Both of these proposed (and not widely accepted) principles describe the role of entropy in non-isolated systems in which complexity is generated and flourishes, such as ecosystems, and economies.

EiLab is one of several models exploring the dynamics of sustainable economics – PSoup, ModEco, EiLab, OamLab, MppLab, TpLab, and CmLab.

The model examines the dynamics of herd growth in African pastoral systems. We used it to examine the role of scale (herd size) stochasticity (in mortality, fertility, and offtake) on herd growth.

The purpose of the model is to examine the strength of network connections in a ceremonial exchange network in a non-hierarchical society.

Positive feedback can lead to “trapping” in local optima. Adding a simple negative feedback effect, based on ant behaviour, prevents this trapping

NearshoreABM simulates whether a region captures the production linkages that nearshoring makes available, or fails to capture them because physical infrastructure and credit supply bind first.

The model runs over the 32 Mexican states at quarterly frequency. Multinational anchor firms decide whether to enter and where to locate, following Melitz selection on heterogeneous productivity under trade-policy uncertainty. Domestic supplier firms decide whether to formalise and whether to invest in quality, and may or may not obtain a contract with an anchor. A banking sector allocates a finite regional credit supply according to observed default risk, serving anchor firms before suppliers.

Electricity and water capacity enter production as non-linear congestion penalties with an engineering-based threshold, so the response of output to demand growth is discontinuous rather than proportional: below the threshold there is no penalty at all, between threshold and capacity the penalty grows quadratically, and above capacity it decays exponentially. Congestion is rivalrous within the quarter, which makes the order of production economically meaningful rather than incidental.

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Cultural group selection model used to evaluate the conditions for agents to evolve who have other-regarding preferences in making decisions in public good games.

Cultural group selection model of agents playing public good games and who are able to punish and punish back.

This model illustrates how the effective population size and the rate of change in mean skill level of a cultural trait are affected by the presence of natural selection and/or the cultural transmission mechanism by which it is passed.