6. Agent Response Equilibrium Model

This chapter is regarded to be the core of the study tool, because it covers the introduction of our Agent Response Equilibrium (ARE) model. To deal with the modeling of national economy which is quite a large and complex system, authors propose ARE model on basis of intelligent engineering theory and multi-agent system technique. Principal elements in the national economy and their interactions are all considered in the model, i.e., production sectors, banks, residents, the government, and various kinds of markets. With the help of ARE model, it is possible to simulate the operation of the economic system and conduct some policy experiments. All the simulation results in other chapters in this book come from the ARE model. In this chapter, we will provide readers with the foundation and overview of the model. Firstly, the concept of agent will be described, and the multi-agent system techniques will be outlined. Then, the framework, components, and features of our ARE model will be introduced. Last but not least, we will present some details of the model, such as the assumptions, database, rule base, communication mechanism, etc.