Stimulate currency circulation in the currency community by creating a customized community

Maen Alaraj () and Makoto Nishibe ()
Additional contact information
Maen Alaraj: Senshu University
Makoto Nishibe: Senshu University

Evolutionary and Institutional Economics Review, 2020, vol. 17, issue 2, No 7, 399-412

Abstract: Abstract Community currencies (CCs) are considered one of the tools used to energize and stimulate the economy and foster sustainable development. This sustainability was formed by iterating non-commercial (e.g., volunteer activities) and subsequent commercial transactions through using the earned CCs from non-commercial transactions in commercial transactions. While many studies have tried to assess the actual impact of these currencies, stagnation in CCs still has not been solved effectively. This paper aims to reduce stagnation by proposing a concept of “customized community” to accelerate the circulation of CCs by creating a market that fits the needs of members within the community. This market is created by giving a “preference” to people who would like to join the community by giving a bonus premium amount to add to the initial purchase of CC with money. The selection of the “preferred” people is based on personal factors (e.g. gender, product category etc.) of members who were frequently and actively involved in the CC transactions. Our main findings suggest that this concept can reduce the stagnation in CCs significantly from 15% to 3%. This customization has been examined by creating a random network model of 100 people and using computer simulation to analyze transactions.

Keywords: Computational economics; Network analysis; Customized community; Currency stagnation; Entropy (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://link.springer.com/10.1007/s40844-020-00181-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:eaiere:v:17:y:2020:i:2:d:10.1007_s40844-020-00181-2

Ordering information: This journal article can be ordered from
https://www.springer ... theory/journal/40844

DOI: 10.1007/s40844-020-00181-2

Access Statistics for this article

Evolutionary and Institutional Economics Review is currently edited by Kiichiro Yagi, Yuji Aruka and Takahiro Fujimoto

More articles in Evolutionary and Institutional Economics Review from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().