Markets emerge from countless individual decisions. This simulation models economic agents and the collective patterns that arise from their interactions.
About This Simulation
Create an innovation investment model with spillovers.
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