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The Firm, Part Of The Economic System: Reasons For Exiting A Market - An Agent-Based Modeling Approach

Author

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  • CIUTACU Ileana

    (Romanian Academy, Bucharest, Romania)

  • MICU Liviu-Alexandru

    (Academy of Economic Studies, Bucharest, Romania)

Abstract

What are the reasons for which firms exit markets? In today's world the processes by which firms enter and exit markets are becoming more and more complex due to the fine networking system globalization and communication create at every level. To find and point out the reasons for which firms or their branches disappear off the market, we stylized and simplified market concepts and developed them in an agent-based model. Using NetLogo, we created an artificial market model where firms and their branches enter or exit the market, produce and sell goods and hire the people inhabiting this world.

Suggested Citation

  • CIUTACU Ileana & MICU Liviu-Alexandru, 2014. "The Firm, Part Of The Economic System: Reasons For Exiting A Market - An Agent-Based Modeling Approach," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 66(6), pages 39-59.
    • Handle: RePEc:blg:reveco:v:66:y:2014:i:6:p:39-59
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    File URL: http://economice.ulbsibiu.ro/revista.economica/archive/66603ciutacu&micu.pdf
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    References listed on IDEAS

    as
    1. Lengnick, Matthias, 2013. "Agent-based macroeconomics: A baseline model," Journal of Economic Behavior & Organization, Elsevier, vol. 86(C), pages 102-120.
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    More about this item

    Keywords

    firm; agent-based model; market; system; globalization;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • E20 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - General (includes Measurement and Data)
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • J00 - Labor and Demographic Economics - - General - - - General
    • P40 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - General

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