1. Evolution of Money Through Multi-Agent Model Abhishek Malik (Y6020) Abhishek Gupta (Y6018) Project Guide: Prof. Amitabha Mukerjee

2. Introduction Agent-Based Simulation for Emergence of Money from Barter Money – A “Medium of Exchange” – A Unit of Value – Storage of value Our objective: Proto-money from barter

3. Related Works M. Kobayashi et.al. use Doubly Structural Network Model (DSN model) (2009) DSN: – Inner-agent model of beliefs/knowledge – Inter-agent model of social-network It explain concept of money as exchangeable medium.

4. Related Works Kiyotaki and Wright did game theoretic analysis of emergence of money through nash-equilibria search. (1989) Duffy and Ochs did a human subject based study based on Kiyotaki-Wright model in 1999. Duffy later performed agent-based model experiments with more encouraging results. (2001)

5. Modeling: Goal

6. Modeling: Rules 1.Exchange: neighboring agents i & j with probability P E if both recognize exchangeability between goods. 2.Learning: i.Imitation (P I ) ii.Trimming (P T ) iii.Conceiving (P C ) iv.Forgetting (P F )

7. Tentative Additions and Conclusions Tentative Additions: – We may like to add models so as to simulate two/ or more regions/ countries. – Observe the behavior of money emergent in the different regions and subsequent interaction. Hypothesis: – Past results would be verified. – H N : Countries may continue with different commodity as money. – H A : Countries may adopt single commodity as money

8. References [1] Duffy, J., “Learning to speculate: Experiments with artificial and real agents”, Journal of Economic Dynamics & Control 25, pages 295-319. (2001) [2] Kiyotaki, N., Wright, R., “On money as a medium of exchange”, Journal of Political Economy 97, pages 927-954. (1989) [3] Kobayashi, M. et. al., “Simulation Modeling of Emergence-of-Money Phenomenon by Doubly Structural Network”, New Advances in Intelligent Decision Technologies, pages 585-594. (2009)

9. Thank You!