THE FIRM, PART OF THE ECONOMIC SYSTEM: REASONS FOR EXITING A MARKET - AN AGENT-BASED MODELING APPROACH

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.

Keywords: firm, agent-based model, market, system, globalization

JEL Classification: A10, C60, E20, G30, J00, P40

Volume: 66, Issue: 6

Pages: 39 - 59

Publication date: , 2014

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/66603ciutacu&micu.pdf

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