A study on agent behaviour conducting Pareto optimality in virtual market

There are two major central multi-agent models used in economics; the general equilibrium model and the strategic or game theoretic model, and we examine the earlier in this paper. General equilibrium theory is a concept of competitive or Walrasian equilibrium that is a situation in which total demand exactly equals total supply. It was proved that the allocation in the equilibrium state of Walrasian market is Pareto optimal in microeconomics. We demonstrate the applicability of the Walrasian virtual market concept with multi-agent paradigm to resource allocation problem. In this paper, we clarify the proposed multi-agent based algorithm successfully calculates Pareto optimal solutions in the resource allocation problem by comparing our method with analytic approaches, such as ε constraint method and fixed point algorithm.