Input Variables and Parameters:
Input Variable Parameter
Loan interest rate uniform(0,0.02)
Lend Amount uniform(0.3, 0.7) * Current Coin
Initial Coin 10000
Initial Credit Score 1000
Daily Interest uniform(-0.02, 0.02)
Default Probability uniform. (0, 0.05)
Borrow Amount uniform(0.3, 0.7) * Current Coin
Probability to be a lender 0.5
Mechanism:
1. Each person will choose to be lender or borrower with probability of 0.5 every day. Only
one role could be chosen in the same day.
2. Lenders will randomly determine their lending interest rate and the amount of coins that
they want to lend. All lenders will be ranked from low to high according to their lending
interest rate.
3. Borrowers will randomly decide the amount of coins that they want to borrow. All
borrowers will be sorted from high to low based on their credit score.
4. Two ranked lists are the sequence for borrowers and lenders to borrow and lend money.
Only the borrower with the higher priority in the list get the all coins that they want from
lenders, the next borrower could start to borrow coins from the lenders. Similarly, once
the lender with the higher priority in the list lend all coins that they have, then the next
lender could begin lending. One borrower is able to borrow coins from one lender or
multiple lenders.
5. Borrowers will return their money to lenders after 5 days and their credit score be gained
by the the lending interest *5. There is still randomly probability that borrowers choose
not to make the repayment. If borrowers default, their credit score will return to 1000.
6. After 100 days, 1000 people’s coins and credit score will be recorded as outputs.
Output:
1. 1000 people’s credit score and coins after 100 days.
2. For every turtle (individual), they walk ahead if their coins increase and back if their coins
decrease. The turtle that has the most number of coins will be in front other turtles.
3. For each turtle, color represent their credit score, the lighter color represent high credit
score.
Future Study:
1. Recording individual’s everyday simulation result, including their roles, lending interest
rate and amount, borrowing amount, credit score and coins.
2. Export output data and conduct analysis for both system and individual behavior.