Multi-Agent Simulation of Fund Circulation in an Artificial Economic System Involving Self-Adjusted Mechanism of Price, Production and Investment

An artificial economic system composed of producers, consumers and a bank was modeled and macroscopic behavior of the system was simulated based on microscopic rules of acts of each agent, where it was assumed that the consumers buy products within the limit of their disposable income, selecting the cheapest product in the market, and producers hire consumers, pay them salary, feed products to the market adjusting both the amount and price of products based on both their amount of goods in stock and total sales during some periods and sometimes invest in equipment, borrowing money from the bank. As a result, it was revealed that the calculated macroscopic behavior of the artificial economic system shows in good agreement with that of a real system in that the market price tends to an equilibrium price depending on the supply and demand of products in the market, two types of producers, winners and losers, arise depending on the production cost with some of the losers ending up going bankrupt, and a business cycle emerges through the fund circulation among agents where total deposit and loaned money in the bank showed cyclic up and down movement in time.