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I'm interested in mathematically describing complex systems that are composed of agents that have self-interest. Recently, I've been thinking along the lines that the macro-structure that we see in such complex systems exist because it is in the interest of each of the individual agents to be a part of the structure, usually because it pays off economically, in one way or another.

There is potentially a simple way to describe systems in such cases, and that is using a kind of economic cost-benefit analysis. For example, State 2 (the complex state) is more favorable when compared to State 1 (the simple state) because the net benefit in State 2 is greater than the net benefit in State 1, and therefore it is in the interest of the agents to remain in State 2, similar to what has been done here:

https://indiarxiv.org/r3up9/

I would like to know if this approach has been taken before for agent-based complex systems, or if there is any work along these lines.

Qmechanic
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Joebevo
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1 Answers1

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You want to learn about the Fundamental theorems of welfare economics, which give conditions for an equilibrium where all agents maximize their preferences, and how the system can move from one equilibrium to another.

A critical discussion of this classical approach, written for physicists, is Time and symmetry in models of economic markets.

eric
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