We investigate the development of the patterns of wealth accumulation in supply chains induced partly by the propagation of failures on global production.
Our model is an elaboration of the simple model of Weisbuch and Battiston [01]. We introduce features of more realistic production networks:
1)    Both markup pricing and a market clearing mechanism;
2)    Structure of the network is allowed to evolve over time;
3)    Firm's strategy for ordering supplies and pricing output.
We use Multi-Agents Systems simulations and our results show that the market clearing mechanism in a long run leads to an equilibrium state of the system in which final production fits the demand. Firms selling the final product at a market price are in competitive market and at equilibrium do not make profit. Intermediate firms, using markup pricing, do make a profit if they succeed to adapt their sales price so as to receive sufficient orders from customers; otherwise they lose customers, decay and disappear. We see monopolistic situations in which just one or two firms are responsible for almost all the production in one layer.
This work brings simple supply chain production models another step to reality.

[01] WEISBUCH G. and BATTISTON S.: From production networks to geographical economics. Journal of Economic Behavior and Organization, 64:448-469, 2007.

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