# Difference between revisions of "Papers on economic Agent-Based simulation"

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− | + | ===Agent-Based Computational Economics: A Constructive Approach to Economic Theory=== | |

+ | Leigh Tesfatsion | ||

+ | *Uses Walrasian Auctioneer pricing mechanism: simultaneous auction where each agent calculates its demand for the good at every possible price and submits this to auctioneer. | ||

+ | *ACE works differently than other models: Events driven by agent interactions after initial conditions: going TOWARDS equilibrium rather than starting with one. | ||

+ | *Disadvantages: validating ACE model outcomes against empirical data. An empirically observed outcome might be a low-probability event lying in a relatively small peak of the outcome of distribution for this true data-generating process, or in a thin tail of this distribution. | ||

+ | |||

+ | The ACE Trading World | ||

+ | Initial conditions | ||

+ | *0 to T periods, finite number of profit seeking hash and bean firms, finite number of consumers | ||

+ | *Each firm has positive amount of money and production capacity |

## Revision as of 19:18, 29 September 2008

### Agent-Based Computational Economics: A Constructive Approach to Economic Theory

Leigh Tesfatsion

- Uses Walrasian Auctioneer pricing mechanism: simultaneous auction where each agent calculates its demand for the good at every possible price and submits this to auctioneer.
- ACE works differently than other models: Events driven by agent interactions after initial conditions: going TOWARDS equilibrium rather than starting with one.
- Disadvantages: validating ACE model outcomes against empirical data. An empirically observed outcome might be a low-probability event lying in a relatively small peak of the outcome of distribution for this true data-generating process, or in a thin tail of this distribution.

The ACE Trading World Initial conditions

- 0 to T periods, finite number of profit seeking hash and bean firms, finite number of consumers
- Each firm has positive amount of money and production capacity