Simple model for the transition from local to centralized production

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.