Modeling the economy allows you to experiment on the economic system.
We are using the modeling tool AnyLogic to develop economic models. AnyLogic allows you to mix agent based, discrete event and systems dynamics models that interact with each other. We have created a price formation model based on supply, demand, competing providers and different reaction delays to the pricing. It turns out that stable pricing is actually very difficult to achieve if there is any delay in the reaction to price – which seems to be true in most real-world markets.
We would also like to model wealth distribution, creation, and the impact of policy rules on the economy.