Markets emerge from countless individual decisions. This simulation models economic agents and the collective patterns that arise from their interactions.
About This Simulation
Create a search and matching model with unemployment.
Key Concepts
- Supply and Demand: Prices emerge from the interaction of buyers and sellers, adjusting to balance quantity demanded and supplied.
- Market Efficiency: How well markets aggregate information and allocate resources, and conditions that cause inefficiency.
- Network Effects: Value increases with the number of users, leading to winner-take-all dynamics and platform economics.
- Behavioral Economics: How psychological factors like bounded rationality and biases affect economic decisions.
Why It Matters
Economic modeling informs policy design, business strategy, and understanding inequality.
How to Explore
- Adjust the sliders to modify simulation parameters and observe how the system responds
- Look for emergent patterns that arise from agent interactions
- Try extreme parameter values to find phase transitions and tipping points
- Compare the simulation behavior to real-world phenomena
Category: Economics & Markets — Exploring economic systems and market dynamics