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An Agent-Based Model of a Minimal Economy
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In this paper, an agent-based model of a minimal economy containing households, retail banks, and producers of consumer and capital goods is presented, where household behavior is based on the buffer-stock savings model by Deaton (1961), while the profit-maximizing firms employ reinforcement learning to determine pricing and production.Abstract:
We present an agent-based model of a minimal economy containing households, retail banks, and producers of consumer and capital goods. Household behavior is based on the buffer-stock savings model by Deaton (1961), while the profit-maximizing firms employ reinforcement learning to determine pricing and production. Competitive retail banks facilitate the flow of funds between households and producers through a fractional-reserve system. Stability of the simulated markets depends only on the self-adjusting, boundedly rational behavior of the agents in the completely closed economic system.read more
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Agent-based macroeconomics: A baseline model
TL;DR: The authors developed a baseline agent-based macroeconomic model and contrasted it with the common dynamic stochastic general equilibrium approach, arguing that agentbased modeling is an adequate response to the recently expressed criticism of macroeconomic methodology because it allows for aggregate behavior that is more than simply a replication of microeconomic optimization decisions in equilibrium.
Journal ArticleDOI
An interdisciplinary model for macroeconomics
Andrew Haldane,Arthur Turrell +1 more
TL;DR: This article explored an interdisciplinary approach to macroeconomic modelling, with techniques drawn from other (natural and social) sciences, and discussed agent-based modelling, which is used across a wide range of disciplines, as an example of such a technique.
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Drawing on different disciplines: macroeconomic agent-based models
Andrew Haldane,Arthur Turrell +1 more
TL;DR: Haldane and Turrell as mentioned in this paper argue that an interdisciplinary approach to modelling in macroeconomics is beneficial and focus on what one such approach -agent-based modelling, which has been extensively used across a wide range of disciplines - could do for macroeconomic economics.
A Computational Market Model Based on Individual Action: A Paradigm for Distributed Resource Allocation
TL;DR: This article used the PLATO computer network to conduct laboratory experiments with double auctions using human participants, and reported results from a double auction tournament with computer trading programs is reported by Rust et al.
References
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Journal ArticleDOI
Technical Note Q-Learning
Chris Watkins,Peter Dayan +1 more
TL;DR: In this article, it is shown that Q-learning converges to the optimum action-values with probability 1 so long as all actions are repeatedly sampled in all states and the action values are represented discretely.
Book
The economy as an evolving complex system II
TL;DR: A.B. Lane and R.F. Tesfatsion as mentioned in this paper discussed the evolution of trading structures in an Artificial Stock Market and discussed the role of game-theoretic models in economic history.
Journal ArticleDOI
Hidden Order: How Adaptation Builds Complexity.
TL;DR: All of these existing systems are computationally expensive and deliver little in the way of important emergent phenomena in relation to the amount of computational effort expended; it may actually preclude emergence of important phenomena that can only materialize in the presence of certain minimum amounts of time or matter.