Chapters * Title * Contents * Introduction * Place * System * Design * Using * Future * Bibliography
Sections
* Design * Two_Simple * Sell * MULE * MULEvsMarketPlace * Incentives * Trade_Dependence * Symmetric_Commodities * Illustrating_Externalities * Showing_The_Model
Incentives for Specialization and Trade
In MULE it's possible to create a surplus even if you don't specialize. In MarketPlace, it's very difficult. MarketPlace
factories use more commodities than they produce unless you either cluster them together or specialize. Let's examine this
feature in a bit more detail.
Take for example the following two cases:
The production chart for case 1 looks like:
The six food plants take in 12 energy units and 6 machinery units and produce 21 food units--a net gain of 3 units.
The production chart for case 2 looks like:
The six mixed plants take in 6 food units, 9 energy units and 3 machinery units and produce 14 mixed units--a net loss of 4
units.
Greg Kimberly/gregkimb@gak.com