The traditional economics demonstrate equilibrium-state economics (or, effective-market demand
curve that has already been achieved) due to its assumptions of fast/instant rational consideration
of economic human. It works well for professional markets at the Ltd/company level due to
involvements of actuarial calculations or quantitative decisions of such agents. However, for nonprofessional
consumers, their rational decision is not precise, nor instant, and going for various goals
based on their views of value. As a result, agent-based model (agent means individual or group
of people) is more important (than traditional economics) that simulates the dynamical processes
of agents’ behaviours (based on some long term strategies/views/preferences, instead of 100% and
fast/instant rational consideration in the traditional economic assumptions) before approaching
the equilibrium-state (or, effective market) described by traditional economics. The (assumed)
constraints, or the boundary conditions of the agent based model consists of (subjective/objective)
resources and views of value of agents (individuals or groups of people).
In the ineffective market cases, vivid dynamic economic evolution before equilibrium state is more
important than the equilibrium state itself (demonstrated by the traditional economics with assumptions
of instant-rational/perfect-calculating economic human). Hence, the traditional economics is
less useful and we need dynamic simulations using Agent Baded Model (ABM). As a result, this suggests
an evaluation method on the effectiveness of ABM and traditional equilibrium-state-economics
for various cases/topics/situations.