Agent-Based Model Approach to Complex Phenomena in Real Economy
Abstract
An agent-based model for firms' dynamics is developed. The model consists of firm agents with identical characteristic parameters and a bank agent. Dynamics of those agents is described by their balance sheets. Each firm tries to maximize its expected profit with possible risks in market. Infinite growth of a firm directed by the "profit maximization" principle is suppressed by a concept of "going concern". Possibility of bankruptcy of firms is also introduced by incorporating a retardation effect of information on firms' decision. The firms, mutually interacting through the monopolistic bank, become heterogeneous in the course of temporal evolution. Statistical properties of firms' dynamics obtained by simulations based on the model are discussed in light of observations in the real economy.
Keywords
Cite
@article{arxiv.0901.1794,
title = {Agent-Based Model Approach to Complex Phenomena in Real Economy},
author = {Hiroshi Iyetomi and Hideaki Aoyama and Yoshi Fujiwara and Yuichi Ikeda and Wataru Souma},
journal= {arXiv preprint arXiv:0901.1794},
year = {2009}
}
Comments
11 page, submitted to Progress of Theoretical Physics Supplement