An agent-based approach as a neutral model to study transition towards circular economy

Our agent-based model studies emerging markets from a population of producer-sellers and consumers. Sellers exhibit a tolerance d for profitability failures that corresponds to d consecutive time steps of failure. After such d time steps, they randomly choose a new strategy changing their prices and/or their raw material (extracted or recycled more or less available depending on a recycling rate). A seller should propose a good price and have enough raw material to make a deal satisfying the consumer's budget. Sellers' activity is profitable for a sufficient number of deals. Our model has two different regimes: one mainly driven by d when the parameter µ ruling the profitability threshold is low; a second one mainly driven by µ. These regimes define prices and thus the number of satisfied sellers and consumers. Parameters have strong macro impacts and recycling is successful only when sellers sufficiently change their strategy.