Self-organization of value and demand

R. Donangelo, K. Sneppen

Published 1999-06-18, updated 2000-04-10Version 2

We study the dynamics of exchange value in a system composed of many interacting agents. The simple model we propose exhibits cooperative emergence and collapse of global value for individual goods. We demonstrate that the demand that drives the value exhibits non Gaussian "fat tails" and typical fluctuations which grow with time interval with a Hurst exponent of 0.7.