Econ1 applet notes
The Econ1 java simulation model initializes itself from parameters within the HTML applet tag, and begins running when the Start button is pressed. The status of each trader in the system at the end of each day is set out in the text area, and a 300-day history of trader idleness and money in circulation is shown in a rolling graphic diplay.
The demonstrations are all initialized through parameters inserted between HTML Applet tags. These parameters define the number of traders, their products, and other factors. The parameters also allow events to be actioned after specified numbers of days - e.g. setting all prices to costs on day 455.
Applet GUI
Start/stop button starts or stops the simulation.
Day counter gives current simulation day.
The Choice option menu gives a range of selectable options to activate. Selected choices are signalled in the rolling graphic area with a vertical bar on the day the option was activated. This option is not required for any of the demonstrations.
Only the first 15 choices are available from the applet choice menu, but all can be accessed using the applet event choice parameters.
| N | Choice Option | Action |
| 0 | Trading on/off | Toggles trader activity. When not trading, production continues, but no goods are bought or sold. Each man uses only what he produces himself |
| 1 | Set Prices = zero | All tool prices are set to zero. Goods are free. |
| 2 | Set random prices | All tool prices are set at a random value greater than their cost and less than their value |
| 3 | Set prices = Values | All tool prices are set at toolvalues |
| 4 | Double prices | All prices are doubled |
| 5 | Halve prices | All prices are halved |
| 6 | Set Prices = Costs | All prices are set to production costs |
| 7 | Set Just Prices | Prices are set at levels which should result in equal idleness among all traders in the system. |
| 8 | Set Unjust 1-Price | Set all prices at costs except tool 1 price which is set at a level which gives man 1 maximum idleness |
| 9 | Set Unjust 4-Price | Set all prices at costs except tool 4 price which is set at a level which gives man 4 maximum idleness |
| 10 | Untooled idleness+ | Increase untooled idleness by 5% |
| 11 | Untooled idleness- | Decrease untooled idleness by 5% |
| 12 | Untooled idleness-- | Set untooled idleness falling with time |
| 13 | Limited credit | Limit maximum IOU issue to total price of all tools |
| 14 | Unlimited credit | Remove IOU issue limits |
| 15 | Set av. period | Set averaging period to 50 days |
| 16 | Set prices=(V+C)/2 | Set prices = (Value + Cost) / 2 |
| 17 | Discriminate | Check Value greater than Price before buying |
| 18 | Don't discriminate | Don't check value against price |
The text area gives current information about each man working in the trading system.
| Man | Man number |
| Status | Alive or dead |
| %I | % Daily idleness |
| %AvI | % Average idleness over previous AVPERIOD days. This acts to damp oscillations in daily idleness. |
| %UI | % Untooled idleness - idleness if no tools owned. |
| Purse | Value of IOUs held |
| IOUs | Value of IOUs issued and not yet redeemed. |
| Ntools | Number of different tools owned |
| tStock | Number of tools on sale. Man X makes and sells tool X. |
| tPrice | Tool Price (days) |
| tValue | Tool value - the time it saves a man each day (days) |
| tCost | Tool production cost (days)cost |
| tLife | Tool lifetime (days) |
The rolling graph at present shows the idleness of man 1, 2, 3, and 4 as i1, i2, i3, i4, and the total number of IOUs in circulation as $. The graph shows the last 300 days, marked in hundreds of days, and scrolls off to the left, so that present data appears at the right hand edge.
| Parameter | Meaning | Default Value |
| CTx | Choice Timer. CTx defines the day on which CAx is performed. x = 0 - 15. CA0 is processed first. | 0 |
| CAx | Choice Action. CAx defines the action taken on day CTx. See choice options | 0 |
| NMEN | Number of men in the trading system. max = 19 | 4 |
| UI | Untooled idleness (all men) | 0 |
| TRADE | Trading = 1, not trading=0 | 1 |
| AVPERIOD | Averaging period for Av. Idleness | 50 |
| JUST | Just pricing markup of tool 1 price over cost | 1.1 |
| TVx | Tool x value : x = 1 to NMEN | 0.002 |
| TCx | Tool x cost : x = 1 to NMEN | 0.001 |
| TLx | Tool x lifetime : x = 1 to NMEN | 10.00 |
Buyers are indiscriminate: they will buy goods whose price is greater than their value. They will buy luxuries.
Buyers have no restrictions on total value of IOUs they can issue.
The imagined world of this simulation model is one of a small number of individuals who, without any tools at all, are all able to live at some degree of idleness. The work that they have to do is termed their "basic work", which may be imagined to be collecting plants or seeds, preparing them and eating them. In the original untooled system, no trade takes place. However the model allows each individual to make a tool (a knife, a bag, a rope, or something) whose value in terms of the time it saves in performing basic work is higher than the time cost of making it. Using such tools, basic work time is reduced, and idleness increased. The tools can also be traded; that is, rather than simply make and use his own tool (if any), a toolmaker may make more tools than he himself needs, and sell the extra tools to other individuals. It is assumed that each tool in the system is used independently of other tools, and they act additively to increase idleness, so that with a full set of available tools, an individual is both more idle than he would be without any tools, and more idle than he would be using only his own tool. The prices of tools are denominated in labour time. A buyer promises to perform some amount of work in exchange for the tool he buys. Thus buyers issue IOUs (I Owe You) to the seller. But the seller can use these IOUs to buy tools himself, so that these IOUs circulate as currency within the trading system, before being redeemed by their original issuer by performing work for someone or other, not necessarily the person to whom they issued the IOU.
The principle advantage of the IOU money system is that there can never be any shortage of money: anybody who wants to buy something can just issue an IOU. The disadvantage of such a system is that individuals may issue IOUs far in excess of their ability to repay, which would result in the amounts of IOUs in the trading system increasing - inflation -, and IOUs eventually becoming devalued. By contrast, the principal advantage of using some tool as money (not allowed in this simulation model) is that inflation is relatively easy to avoid. A tool is not an empty promise, but something valuable in itself. However, the disadvantage of such money is that restrictions in the supply of money may prevent purchases that would otherwise be made, and reduce overall idleness. Furthermore, anyone who wanted to join the trading system would have to first do some work, or make some tool, that would earn him the money to buy other tools.
Individuals are assumed to be as physically active in idle time as when busy, and to be otherwise identical to each other, and equally capable of every kind of work.
Each trader performs some unspecified amount of basic work each day to maintain himself alive.
Each trader also makes a single unique tool which, if it is a useful tool, saves time performing basic work. Man 1 makes tool 1, man 2 makes tool 2, etc.
Each day, each trader in the system goes through a set of procedures.
- He performs Basic Work using any tools that he possesses.
- He buys as much labour time as he can with IOUs he holds.
- He tries, in the remaining time, to make tools if shop stocks are low.
- If he needs tools, he buys them, issuing IOUs if necessary.