Experimental research on the welfare in a closed production network

E. E. Ivanko

Izvestiya Instituta Matematiki i Informatiki Udmurtskogo Gosudarstvennogo Universiteta, Tome 52 (2018), pp. 33-46.

Résumé

In the present paper, I study the effects appearing in a closed network consisting of generalized key manufacturers that are connected by the buyer-seller relations. The volume of trade between the participants is assumed to be constant. The purpose of this study is to reveal apparent negative socio-economic properties of the system and to identify tools for compensating for these properties both by exploiting the inner laws of money exchange and with the help of an outer regulator. The following approaches are considered consecutively: price increase by unprofitable producers, government support for unprofitable producers and government influence through the emulation of a network participant. Extensive computational experiments have demonstrated that government support conducted through a single unprofitable virtual vertex-manufacturer can not only prevent the appearance of other unprofitable manufacturers, but also tangibly balance the yield of the profitable ones.

Détail

Keywords: dynamical system on a graph, resource network, production network, buyer-seller network, government support.

Bibliographie

[1] Erzin A. I., Takhonov I. I., “The problem of the search for a balanced flow”, Sibirskii zhurnal industrial'noi matematiki, 9:4 (28) (2006), 50–63 (in Russian) | MR | Zbl

[2] Kuznetsov O. P., “Uniform resource networks I. Complete graphs”, Automation and Remote Control, 70:11 (2009), 1889–1990 | DOI | MR | Zbl

[3] Zhilyakova L. Yu., “Dynamic graph models and their properties”, Automation and Remote Control, 76:8 (2015), 1417–1435 | DOI | MR | Zbl

[4] Björner A., Lovász L., “Chip-firing games on directed graphs”, Journal of Algebraic Combinatorics, 1:4 (1992), 305–328 | DOI | MR | Zbl

[5] Bitar J., Goles E., “Parallel chip firing games on graphs”, Theoretical Computer Science, 92:2 (1992), 291–300 | DOI | MR | Zbl

[6] Biggs N. L., “Chip-firing and the critical group of a graph”, Journal of Algebraic Combinatorics, 9:1 (1999), 25–45 | DOI | MR | Zbl

[7] López C. M., “Chip firing and the Tutte polynomial”, Annals of Combinatorics, 1:1 (1997), 253–259 | DOI | MR | Zbl

[8] van den Heuvel J., “Algorithmic aspects of a chip-firing game”, Combinatorics, Probability and Computing, 10:6 (2001), 505–529 | DOI | MR | Zbl

[9] Bak P., Tang C., Wiesenfeld K., “Self-organized criticality: An explanation of the $1/f$ noise”, Physical Review Letters, 59:4 (1987), 381–384 | DOI | MR

[10] Speer E. R., “Asymmetric abelian sandpile models”, Journal of Statistical Physics, 71:1–2 (1993), 61–74 | DOI | MR | Zbl

[11] Peterson J. L., Petri net theory and the modeling of systems, Prentice-Hall, Englewood Cliffs, New Jersey, 1981, x+290 pp. | MR

[12] Namatame A., Kaizouji T., Aruka Y. (Eds.)., The complex networks of economic interactions. Essays in agent-based economics and econophysics, Springer, Berlin–Heidelberg, 2006, ix+350 pp. | DOI | MR | Zbl

[13] Knieps G., Network Economics, Springer, Cham, 2015, 169 pp. | DOI | MR

[14] Commendatore P., Matilla-García M., Varela L. M., Cánovas J. S. (Eds.), Complex networks and dynamics, Springer, Cham, 2016, xiii+359 pp. | DOI | MR | Zbl

[15] Errasti A. (Ed.)., Global production networks: operations design and management, 2nd ed., CRC Press, 2017, 355 pp.

[16] Norouzilame F., Moch R., Riedel R., Bruch J., “Global and regional production networks: a theoretical and practical synthesis”, Advances in production management systems. Innovative and knowledge-based production management in a global-local world, Springer, Berlin–Heidelberg, 2014, 108–115 | DOI

[17] Kranton R. E., Minehart D. F., “A theory of buyer-seller networks”, Networks and Groups, Springer, Berlin–Heidelberg, 2003, 347–378. | DOI

[18] Nagurney A., Supply chain network economics: dynamics of prices, flows and profits, Edward Elgar Publishing, Northampton, MA, USA, 2006, 413 pp.

[19] Watson M., Lewis S., Cacioppi P., Jayaraman J., Supply chain network design: applying optimization and analytics to the global supply chain, Pearson FT Press, 2012, 424 pp.

[20] Tesfatsion L., “Agent-based computational economics: growing economies from the bottom up”, Artificial Life, 8:1 (2002), 55–82 | DOI

[21] Farmer J. D., Foley D., “The economy needs agent-based modelling”, Nature, 460:7256 (2009), 685–686 | DOI

[22] Chacon J. L. T., Introduction to dynamic macroeconomic general equilibrium models, Vernon Press, 2015, 282 pp.

[23] Skidelsky R., Keynes: the return of the Master, Allen Lane, 2009, 192 pp.

[24] Epstein D., Tillack P., “Classification of agricultural enterprises by their financial standing”, Applied Economics Letters, 9:6 (2002), 397–406 | DOI

[25] Scheve K., Stasavage D., Taxing the rich: a history of fiscal fairness in the United States and Europe, Russell Sage Foundation, 2016, 288 pp.

[26] Browne J., Immervoll H., “Mechanics of replacing benefit systems with a basic income: comparative results from a microsimulation approach”, The Journal of Economic Inequality, 15:4 (2017), 325–344 | DOI