The Ecological Economic Model Based on Bounded Rational Agents

I. Introduction Ecology is a newly emergent subject. Stemming from natural history and evolutionary biology, ecology came into being at the beginning of the 20th century. Ecology has been strug- gling for its existence as a science, which has involved a s…

The Ecological Economic Model Based on Bounded Rational Agents

From the view of hominine bounded rationalities, this paper analyzes the important relationships between ecology and economics with behavioral finance. With a different focus, this paper adopts a new conceptualization of stock to show how this conceptualization leads to a new measure of the interaction between ecology and economics, based on bounded rational agents. The hierarchical structure of ecological economic system is described with a multi-agent sinmlation program. This paper also develops an ecological economic model, in which behavioral finance theories are applied to simulating the dynamics system. With the model this paper confirms, that macro-level indicalors of sustainability are predictably influenced by behaviors of bounded rational agents at the micro-level, We discuss the significance of these findings in order to better understand the ecological-economic system based on behavioral finance.