Economic Agent
An Economic Agent is an intelligent agent who performs economic acts within an economic market.
- AKA: Economic Actor, Economic Party.
- Context:
- They can (typically) have Agent Preferences.
- They can use Economic Reasoning to make Economic Judgements (to justify their economic choices).
- They can have Economic Assets.
- They can receive Economic Income (and range from being a low-income agent to being a high-income agent).
- They can have Economic Debts and Economic Obligations.
- They can range from being a Significant Economic Agent to being a Marginal Economic Agent.
- They can range from being a Buyer to being a Seller (or rentier).
- They can range from being a Rational Economic Agent to being an Irrational Economic Agent.
- They can be associated with a Fiscal Health Score (by a fiscal health measure).
- Example(s):
- an Economic Person (with assets).
- an Organization (with assets), such as a local government.
- an AI Trader.
- …
- Counter-Example(s):
- a Non-Economic Agent.
- a Moral Agent.
- a Hedonistic Agent.
- a Game Player, where game acts are not economic acts.
- See: Rent-Seeking Behavior, Profit-Making Behavior, Resource Substitution Effect.
References
2013
- http://plato.stanford.edu/entries/game-theory/#Util
- QUOTE: … An economic agent is, by definition, an entity with preferences. Game theorists, like economists and philosophers studying rational decision-making, describe these by means of an abstract concept called utility.
2012
- http://en.wikipedia.org/wiki/Agent_%28economics%29
- In economics, an agent is an actor and decision maker in a model. Typically, every agent makes decisions by solving a well- or ill-defined optimization/choice problem.
For example, buyers and sellers are two common types of agents in partial equilibrium models of a single market. Macroeconomic models, especially dynamic stochastic general equilibrium models that are explicitly based on microfoundations, often distinguish households, firms, and governments or central banks as the main types of agents in the economy. Each of these agents may play multiple roles in the economy; households, for example, might act as consumers, as workers, and as voters in the model. Some macroeconomic models distinguish even more types of agents, such as workers and shoppers[1] or commercial banks.[2]
The term agent is also used in relation to principal–agent models; in this case it refers specifically to someone delegated to act on behalf of a principal.[3]
In Agent-based computational economics, the concept of an agent has been more broadly interpreted to be any persistent individual, social, biological, or physical entity interacting with other such entities within the context of a dynamic multi-agent economic system.
- In economics, an agent is an actor and decision maker in a model. Typically, every agent makes decisions by solving a well- or ill-defined optimization/choice problem.
- ↑ Robert Lucas, Jr.,(1980), 'Equilibrium in a pure currency economy'. Economic Inquiry 18 (2), pp. 203-20.
- ↑ Timothy S. Fuerst (1992), 'Liquidity, loanable funds, and real activity'. Journal of Monetary Economics 29 (1), pp. 3-24.
- ↑ Joseph E. Stiglitz (1987). “Principal and agent", The New Palgrave: A Dictionary of Economics, v. 3, pp. 966-71.
2009
- (Ariely, 2009) ⇒ Dan Ariely. (2009). “Predictably Irrational: The Hidden Forces That Shape Our Decisions - revised and expanded edition." Harper-Collins New York. ISBN:978-0-06-135323-9
- QUOTE: Neoclassical economics is built on very strong assumptions that, over time, have become “established facts.” Most famous among these are that all economic agents (consumers, companies, etc., are fully rational, and that the so-called invisible hand works to create market efficiency). To rational economists, these assumptions seem so basic, logical, and self-evident that they do not need any empirical scrutiny.