THEORETICAL AND METHODOLOGICAL PRINCIPLES OF APPLICATION OF AGENT-ORIENTED APPROACH TO MODELING PROCESSES OF LOCAL HROMADAS
This article presents a theoretical and methodological framework for applying a multi-agent systems (MAS) approach to modeling the budgeting processes of local hromadas. MAS-based modeling enables consideration of agents’ heterogeneity, bounded rationality, and dynamic interaction structures, whi...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Oikos Institute - Research Center Bijeljina
2025-07-01
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| Series: | Collection of Papers New Economy |
| Subjects: | |
| Online Access: | https://conference.oikosinstitut.org/files/proc/Vol3No1/2.htm |
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| Summary: | This article presents a theoretical and methodological framework for applying
a multi-agent systems (MAS) approach to modeling the budgeting processes
of local hromadas. MAS-based modeling enables consideration of agents’
heterogeneity, bounded rationality, and dynamic interaction structures, which
traditional models typically overlook. These features allow for a more realistic
reproduction of economic processes at the hromada level. The study explores
the potential of MAS in solving practical problems such as resource allocation
optimization, strategic planning for sustainable development, and strengthening
resilience to crises. Particular attention is paid to the development of a budget
auction model based on game theory, where economic actors - including local
government, enterprises, and residents - engage in a structured competition for
resource distribution. The auction mechanism identifies production functions and
utility values for each actor, enabling iterative optimization based on predefined
efficiency criteria. A proposed simulation framework combines the auction logic
with reinforcement learning methods (MARL), where agents improve their
strategies through interaction and feedback. The article also outlines a multi-step
algorithm for modeling decision-making and coordination processes within the
decentralized budget structure. Ultimately, the approach offers tools for more
transparent, participatory, and efficiency-driven public finance management.
Its implementation can support the digital transformation of local governance,
aligning resource distribution with sustainable development goals. The proposed
methodology is particularly relevant in the context of Ukraine’s decentralization
reform and post-war recovery challenges, and it may serve as a foundation for the
development of intelligent public finance systems in local hromadas. |
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| ISSN: | 2831-1728 2831-1736 |