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May 13, 2026Mathematics2 citationsOpen Access

Multi-Strategy Market Dynamics Analysis: A Novel Framework for Agent-Based Economic Modeling with Reinforcement Learning

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YDYuhang DuYZYuhan Zhao

Key Points

  • The aim is to develop a novel framework for analyzing market dynamics through agent-based modeling and reinforcement learning.
  • Integrated strategy–stability–macro inference pipeline
  • Evaluation using simulation dataset of 447,129 records across four scenarios
  • Employed moving block bootstrap for inference adjustments
  • Competitive strategies dominate with 60.8% observation frequency and average profitability of 28.07 monetary units per period
  • Dynamic Market Stability Index shows mean stability of 0.372, peaking at 0.780 during consolidation
  • Counterfactual analysis projects 28.4% GDP increase from market power-to-competition intervention

Abstract

This paper presents a Multi-Strategy Market Dynamics Analysis (MSMDA) framework for agent-based economic modeling with reinforcement learning. The primary methodological contribution is an integrated strategy–stability–macro inference pipeline that links population-level strategy evolution to dynamic market stability and model-internal counterfactual policy analysis. The framework is organized into six analytical components: Strategy Temporal Pattern Recognition (STPR), Strategy Transition Detection and Analysis (STDA), Strategy-Macro Causality Analysis (SMCA), the Dynamic Market Stability Index (DMSI), the Adaptive Rationality Equilibrium (ARE), and the Information Asymmetry Propagation (IAP) metric. The method is evaluated within a simulation dataset comprising 447,129 records across four experimental scenarios, 1500 discrete time periods, and 200 heterogeneous firms governed by proximal policy optimization. Results show that competitive strategies dominate market emergence patterns at 60.8% of all observations and achieve superior average profitability of 28.07 monetary units per period, compared with −4.49 for dumping strategies and 7.83 for market power strategies. The DMSI reveals a mean stability of 0.372 with standard deviation 0.097, peaking at 0.780 during strategic consolidation and collapsing to zero during a major demand shock. Within the simulated economy, doubly-robust counterfactual analysis projects a 28.4% GDP increase from a market power-to-competition intervention and a 31.2% increase under full ARE optimization at ρ*=0.6. The ARE further identifies a Pareto-optimal market configuration that jointly maximizes per-firm profit at 229.82 monetary units per period and systemic stability at DMSI =0.67, indicating that efficiency and resilience need not conflict in the calibrated simulation environment. To address time-series autocorrelation in bootstrap inference throughout the framework, we employ a moving block bootstrap with data-adaptive block length selection based on the spectral density at frequency zero, providing finite-sample confidence intervals for the reported test statistics and counterfactual projections.

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Cite This Study

Du et al. (2026) studied this question.

synapsesocial.com/papers/6a04158679e20c90b444543ehttps://doi.org/10.3390/math14101621
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