Experimental research on the welfare in a closed production network

In the present paper, I study the effects appearing in a closed network consisting of generalized key manufacturers that are connected by the buyer-seller relations. The volume of trade between the participants is assumed to be constant. The purpose of this study is to reveal apparent negative socio-economic properties of the system and to identify tools for compensating for these properties both by exploiting the inner laws of money exchange and with the help of an outer regulator. The following approaches are considered consecutively: price increase by unprofitable producers, government support for unprofitable producers and government influence through the emulation of a network participant. Extensive computational experiments have demonstrated that government support conducted through a single unprofitable virtual vertex-manufacturer can not only prevent the appearance of other unprofitable manufacturers, but also tangibly balance the yield of the profitable ones.