Analysis of the Behavior of Agent-Based Artificial Economic System Model Taking into Account of New Entry of a Firm

Abstract

Agent-based simulation has been used for many social problems as a method of analyzing real systems based on bottom-up approach. In the previous study, an artificial economic model composed of consumers, producers and a bank as been developed and fundamental macroscopic behaviors such as the market price formation, business cycle are found to be reproduced based on the microscopic rules of actions of agents and their interactions. This study aims to develop a revised model where rules of actions of business starting and bankruptcy are taken into account and their influences on the emergent behavior, such as the distribution of corporate assets have been analyzed.