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A Stylized Software Model to Explore the Free Market Equality/Efficiency Tradeoff

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Trends in Practical Applications of Agents and Multiagent Systems

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 221))

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Abstract

This paper provides an agent-based software exploration of the well-known free market efficiency/equality trade-off. Our study simulates the interaction of agents producing, trading and consuming goods within different market structures, and looks at how efficient the producers/consumers mapping turn out to be as well as the resulting distribution of welfare among agents at the end of an arbitrarily large number of iterations. A competitive market is compared with a random one. Our results confirm that the superior efficiency of the competitive market (an effective producers/consumers mapping and a superior aggregative welfare) comes at a very high price in terms of inequality (above all when severe budget constraints are in play).

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References

  1. Okun, A.K.: Equality and efficiency, the big tradeoff. The Brookings Institution (1975)

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Correspondence to Hugues Bersini .

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© 2013 Springer International Publishing Switzerland

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Bersini, H., van Zeebroeck, N. (2013). A Stylized Software Model to Explore the Free Market Equality/Efficiency Tradeoff. In: Pérez, J., et al. Trends in Practical Applications of Agents and Multiagent Systems. Advances in Intelligent Systems and Computing, vol 221. Springer, Cham. https://doi.org/10.1007/978-3-319-00563-8_1

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  • DOI: https://doi.org/10.1007/978-3-319-00563-8_1

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-00562-1

  • Online ISBN: 978-3-319-00563-8

  • eBook Packages: EngineeringEngineering (R0)

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