Understanding Autonomous Economic Agents (AEAs)
An autonomous economic agent (AEA) leverages artificial intelligence to connect with other AI applications, process real-time data, and take actions based on that data.
It’s important to note that AEAs are distinct from APIs or smart contracts.
They operate autonomously based on predefined rules without requiring external input.
Exploring the Emergence of Autonomous Agents
The term “economic agent” traditionally refers to human individuals, firms, or governments involved in economic activities such as buying goods and services or trading financial assets.
It encompasses entities that make decisions regarding the allocation of scarce resources.
However, in recent times, the concept of an economic agent has expanded to include non-human agents like bots.
This broader perspective prompts a closer examination of autonomous economic agents.
Exploring Rational Behavior in Economic Agents
Autonomous agents, by definition, possess self-governance and control over their actions.
They operate independently, without external control or supervision, and pursue their goals through self-generated means.
Economists recognize these characteristics as fundamental to theories of rational behavior exhibited by economic actors.
Neo-classical economics, for example, assumes that all economic agents are rational actors who pursue their personal goals without external guidance or influence, such as government regulations or other constraints.