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## NetLogo User Community Models

WHAT IS IT?

This is a simulation of three different elements - merchants, banks, and shoppers, and how they interact.

HOW IT WORKS

Merchants:
They simply want to sell their wares. Then are given a stock as the simulation begins, and adjust their price as Shoppers buy from them. (More Purchases -> Higher Price; Less Purchases -> Lower Price). When they areout of stock, they transfer their earnings to the nearest bank.

Banks:
They lend money out to Shoppers, and recieve money from Merchants. They adjust their lending rates (ie if the Shopper asks for \$100, and the lending rate is 75%, they get \$75 from the bank) depending on how much Shoppers get from them (More Loans -> Lower Percentage; Less Loands -> Higher percantage). They are subject to a configurable tax rate, which acts every tick.

Shoppers:
They have two functions:

- To buy from merchants. They choose which by figuring out the closest one with the best prices, or if no merchant matches their best price, then they don't purchase, forcing merchants to drive down their rates.
- To get money from banks. They choose which by figuring out the closest one with the highest lending rate, or if no bank matches their minimum lending rate, then they don't go to banks, forcing banks to drive up their rates.

HOW TO USE IT

Simply click "Setup" and then "Go".

- number-* : How many of that breed start out on the board.
- start-price : What price merchants start out charging.
- start-stock : How much stock merchants get when they run out.
- out-of-business : When the merchant hits this price, he quits.
- bank-seed : How much money each bank starts out with.
- tax-rate : The tax rate effected on the banks each tick.
- start-money : How much money each shopper starts out with.
- price-tolerance : The maximum price a shopper will accept a merchant charging
- rate-tolerance : The minimum rate a shopper will accept a bank using

THINGS TO NOTICE

It's all in the graphs.
- Average Money & Prices : How much money the merchants are charging, how much the average shopper has, and the "baseline" (ie the price-tolerance)

- Average Bank Borrowing Rates : The banks' lending rates. The "baseline" is the
rate-tolerance, in this case.

- Visits: How many visits banks and merchants are getting on average.

THINGS TO TRY

Try exploring different ratios of shoppers/banks/merchants and see how they manage.

Also, mess around with the shoppers' pickiness, and see how prices and rate fluctuate.

CREDITS AND REFERENCES