Abstract
We present a cobweb model of interdependent markets on both the supply and demand sides and apply it to a food and bioenergy framework. The supply side is represented by an agent based model of global land use while the consumer side consists of interlinked demand functions. We find that the two kinds of interdependencies have opposing effects. Linking markets on the supply side transfers instabilities within the system and may cause price fluctuations in previously stable markets. Market interdependency on the demand side, on the other hand, has a stabilizing effect.
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Acknowledgements
Financial support from the Swedish Energy Agency and from the EU-FP7 project MatheMACS is gratefully acknowledged.
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Jonson, E., Lundberg, L., Lindgren, K. (2015). Impacts on Stability of Interdependencies Between Markets in a Cobweb Model. In: Amblard, F., Miguel, F., Blanchet, A., Gaudou, B. (eds) Advances in Artificial Economics. Lecture Notes in Economics and Mathematical Systems, vol 676. Springer, Cham. https://doi.org/10.1007/978-3-319-09578-3_16
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DOI: https://doi.org/10.1007/978-3-319-09578-3_16
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