Agent-Based Free Competitive Market Build and Simulation Experiments

Firm as agent, a free competitive market is build. The interaction rule between agents (firms) is Prisoner's Dilemma game. Each agent can adopt competition or cooperation strategy and can also change its strategy during the market gaming process, which is called an adapting process. The principle of adapting is maximum benefit, so, the next-step’s strategy of an agent in the gaming process at a free competitive market is the same with the neighbor who was the biggest winner in last game circle. Using Java platform and thread, applet technologies, a visually oriented simulation program is programmed and run repeatedly. Different patterns created and some meaningful rules in free competitive market can be concluded. Depended on these direct-viewing representations, we can get some cognition about free competitive market and how to manage a firm under different market environment.