A (reactive) lattice-gas approach to economic cycles

Physics – Condensed Matter – Statistical Mechanics

Scientific paper

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The paper has been presented on APFA4 conference and submitted to Physics A

Scientific paper

10.1016/j.physa.2004.06.078

A microscopic approach to macroeconomic features is intended. A model for macroeconomic behavior under heterogeneous spatial economic conditions is reviewed. A birth-death lattice gas model taking into account the influence of an economic environment on the fitness and concentration evolution of economic entities is numerically and analytically examined. The reaction-diffusion model can be also mapped onto a high order logistic map. The role of the selection pressure along various dynamics with entity diffusion on a square symmetry lattice has been studied by Monte-Carlo simulation. The model leads to a sort of phase transition for the fitness gap as a function of the selection pressure and to cycles. The control parameter is a (scalar) ''business plan''. The business plan(s) allows for spin-offs or merging and enterprise survival evolution law(s), whence bifurcations, cycles and chaotic behavior.

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