Exploratory Model Building Toward Agent-Based Economics

The economic model is always an abstraction from the real economy, and will not be perfectly completed as long as any kind of models. There is possibility to deny the model by new observations at any moment, because of the nature of scientific models that are just valid to the past experience[2][3]. Especially in the social science, the models are exposed to the fact that individuals and society, which are targets to be modeled, make changes very often. It is caused by the abstraction at high level in social science. At the viewpoint of systemics, the rules on the layer would be changed by the emergence occurred from the lower layer. Thus, the economic model should be well pliant to change as the target changes. On the basis of the above, we are now developing a platform that provides the extensible economic model. It is called “Boxed Economy Model”, which is an artificial economy model for the agent-based economic simulation to make predictions and explanations of the real economic movements in the entire economy . In this paper, we outline the procedure of model building method for the agent-based economic simulation, especially for Boxed Economy Model. The argument is based on the agent-based model, but it can be also applied to other social simulations.