Stochastic Networked Governance: Bridging Econophysics and Institutional Dynamics in a Positive-Sum Agent-Based Model (opens in new tab)

Traditional macroeconomic growth models rely on general equilibrium and continuous, frictionless institutional transitions, failing to account for the catastrophic structural collapses observed in empirical economic history. We propose the Stochastic Networked Governance (SNG) model, a discrete-time, agent-based framework that bridges econophysics, network science, and institutional economics. By defining jurisdictions through a binary institu...