The Trading Principle: Empirical Validation via Network Simulation

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Authors: Jamie Morris
Cited by: 0

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