Results

Technically, the model outlined above is a system of non-linear and stochastic recurrence relations. The number of degrees of freedom of this system is very large not only due to the numerous recurrence relations that describe the behavior of each agent, but also due to the fact that they are implemented by multitude of agents and coupled by a considerable number of markets. In the following, the solution to this system of equations is established through numerical simulation. A numerical simulation is not a general proof of stability and each simulation is only valid for one set of parameters and a set of initial conditions. Experiments show though that the model is stable for a wide range of parameters and initial conditions.