Simple model for the transition from local to centralized production.

Benito-Calvino, Guillermo; Jensen, Pablo · Phys Rev E · 2025

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Abstract

We present a simple model of a crucial phenomenon in modern societies: The shift from local to centralized production, leading to economies of scale and mass production transported over long-distance networks. Agents combine two distinct (and limited) resources, time and raw materials, either to produce for self-consumption or to sell on the market. The model shows a rich landscape of diverse production regimes, including mixed regimes where agents optimize utility by combining time spent working for the market, for self-subsistence, or by taking time off.