Simulation agent-based model of heterogeneous firms through software module

Abstract

Research goals and objectives: study of the simplest agent-based model with heterogeneous firms using a software module. Object of research: microeconomics system with heterogeneous agents. Subject of research: agent-based model of microeconomic system with different types, equilibrium and disequilibrium states of the systems with specially developed desktop application. Research methods: optimization methods, bifurcation analysis, stability analysis, simulation methods, game theory. Results of the research: a market moves from stability to dynamic chaos with an increase in number of firms provided the firms have heterogeneous types. If no less than two-thirds of firms use naive expectations, the state of dynamic chaos will also appears in the market. The crucial factor which ensures market stability is the adaptive approach of firms’ competitive strategy.