A functional framework for agent-based models of exchange

Nicola Botta (1) , Antoine Mandel (2) , Cezar Ionescu (1) , Mareen Hofmann (1) , Daniel Lincke (1) , Sybille Schupp (3) , Carlo Jaeger (1)

1 PIK - Potsdam Institute for Climate Impact Research
2 CES - Centre d'économie de la Sorbonne
3 Institute for Software Systems

We propose a functional framework for studying agent-based dynamical models of exchange. The framework consists of a notation and of a number of elementary definitions. We argue that - in comparison to narrative descriptions - the framework has a number of advantages: (1) it allows one to express precisely the relationships between the classical notion of general equilibrium and agent-based models of exchange; (2) it supports computational descriptions of models of exchange which can be unambiguously implemented; (3) it assists the numerical investigation of such models by providing a specific set of elementary notions and computational primitives. These can be used to deduce model properties and to setup "crucial" numerical experiments for validating model implementations. In a companion paper, we apply the framework to specify and study a model of exchange in which multiple equilibrium prices coexist and prices evolve according to a simple trading scheme and to a generic genetic rule.

Mots clés: Barter economies; General equilibrium; Agent-based methods; Functional specifications; Price dynamics

Domaines: Economies et finances

Nicola Botta, Antoine Mandel, Cezar Ionescu, Mareen Hofmann, Daniel Lincke, et al.. A functional framework for agent-based models of exchange. Applied Mathematics and Computation, 2011, 218 (8), pp.4025-4040. ⟨10.1016/j.amc.2011.08.051⟩. ⟨halshs-00639725⟩