Customer–Supplier–Government Economic Simulation

This demo showcases an Agent-Based Model (ABM) of an economic system where customers, suppliers, and the government interact dynamically. It illustrates how market stability, price fluctuations, and consumer satisfaction can emerge from decentralized decisions and feedback loops.

• Customers purchase products based on budget, preferences, and peer influence.
• Suppliers adjust prices and production levels based on demand and tax rates.
• Government collects taxes, provides subsidies, and regulates the market to maintain stability.

Video Demonstration

Figure: Visualization of the economic ecosystem simulation. Circles represent customers, squares represent suppliers, and the central node symbolizes government regulation. Arrows indicate interactions such as purchases, taxes, and subsidies. The simulation demonstrates how simple local interactions lead to complex emergent economic dynamics.

About the Model

Each step of the simulation represents an economic cycle:

• Customers make purchase decisions based on product prices and social influence.
• Suppliers produce goods, update prices, and report profits.
• Government adjusts tax rates and redistributes income to balance the economy.

The model allows studying emergent market patterns such as supply-demand oscillations, collective consumption trends, and the effect of taxation policies on economic stability.

Implementation Details

The model is implemented using Mesa for the agent-based simulation and Solara for the interactive visualization and web interface. Plotly is used to render dynamic charts such as product prices, government tax revenue, and customer satisfaction over time.

Download / View Source

The full source code for this demo is available on GitHub:

📥 Download / View Source