Let:
A={a1,a2,...,an}A = \{a_1, a_2, ..., a_n\} be a set of economic agents
Zij{White,Green,Yellow,Red,Black,Clear}Z_{ij} \in \{White, Green, Yellow, Red, Black, Clear\} be the zone between aia_i and aja_j
Then, for each triplet or higher-order group:
Iijk(t)=f(Lijk, Pijk(t), Sijk(t), Wijk(t), Stijk(t), Zijk(t))Oijk(t)I_{ijk}(t) = f\Big(L_{ijk},\ P_{ijk}(t),\ S_{ijk}(t),\ W_{ijk}(t),\ St_{ijk}(t),\ Z_{ijk}(t)\Big) \Rightarrow O_{ijk}(t)
Where:
Iijk(t)I_{ijk}(t): Interaction function at time t
Oijk(t)O_{ijk}(t): Emergent outcome (economic, relational, behavioral)
This enables simulation of:
Emerging coalitions (zone convergence)
Systemic betrayal or trust contagion (zone decay or reinforcement)
Adaptive governance shifts based on zone distributions
Implication for Theory and Policy:
This CAS framework challenges:
Reductionist rational choice theory by embracing ambiguity and collective emergence
Static institution design by emphasizing the dynamic nature of zone-based governance
Over-reliance on dyadic modeling by integrating triadic, n-adic, and evolving networks as primary analytic units
It opens new vistas for relational econometrics, AI-based strategic forecasting, and institutional design for volatile global systems.
List of References
Game Theory & Strategic Behavior:
