The Trading Principle: Empirical Validation via Network Simulation
Abstract
We present empirical evidence from computational simulation supporting the Trading Principle: that optimal network connectivity decreases as maintenance costs increase in trading systems. Across simulated networks, optimal connectivity exhibits a statistically significant negative correlation with per-link maintenance cost (r = −0.551, p < 0.05), while efficiency declines sharply as costs rise (r = −0.915). These results demonstrate that network structure emerges from economic trade-offs between exchange efficiency and maintenance burden. Although absolute efficiency values require calibration, the directional relationships and cost-conditioned optima are robust. This work establishes the Trading Principle as a generative, testable framework governing network organization across domains, including metabolic, neural, ecological, and economic systems.
Fields of Study & Subjects
Complex Systems and Time Series Analysis
Game Theory and Applications
Digital Platforms and Economics
Publication details
- Journal / source
- Zenodo (CERN European Organization for Nuclear Research)
- Publication date
- 1 January 2026
- Document type
- Preprint