Reports

Discussion Papers

No.975 Understanding Price Formation through a Boid-Based Analysis: Insights from Thailand in the Context of Emerging Economies

by Tsubasa SHIBATA

September 2025

ABSTRACT

This study applies the boid model—a framework of separation, alignment, and cohesion rules originally developed to simulate swarm behavior—to analyze price formation in emerging economies. By adapting these behavioral rules, it classifies sectoral price responses as competitive avoidance, peer alignment, or convergence toward benchmarks. Using Multiregional Input-Output data from the Asian Development Bank, the analysis focuses on Thailand, a country with relatively moderate inflation during the recent global surge. Results show heterogeneous patterns: some sectors follow international price trends, while others maintain differentiation. These findings challenge the view that emerging economies passively absorb global pressures and highlight how behavioral interdependencies shape price dynamics, offering implications for market analysis and policy design.

Keywords: Boid model, price formation, emerging economies, MRIO
JEL classification: F14, F41, O10

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