Rethinking the Social Contract: An Agent-Based Model Approach

Abstract

The actual crisis has brought to a forefront the failure in wealth dis- tribution and it has questioned market with democracy. It has vividly demonstrat- ed the deficiencies in the outdated current economic theories, calling for rethink- ing Economics. Agent Based Modelling (ABM) applied to this economic rethinking is a choice, a challenge and a promise. Market efficiency has received attention from ABM experts and the authors. However they have not studied the wealth distribution problem. In this paper, using an agent-based model approach, we study the sensitivity of wealth distribution to the agents’ behavior in a Contin- uous Double Auction market. We find that the inequality on wealth distribution increases as the percentage of parasitic agents grows