Invisible Hand Process Simulation Based On Collective Intelligence Computational Model

In the modern understanding an Invisible Hand process, which is widely believed to be present in a Free Market, is perceived as something very general a process in which the outcome is produced in a decentralized way, with no explicit cooperation between the acting agents. The second essential feature is that the process is not intentional; yet its impact on the market is very strong (Joyce, 2001). The agents’ aims are neither coordinated nor identical with the actual outcome, which turns out to be an unintentional by-product of those individual aims. The process takes place without the agents’ consciousness of taking a part in it this is why the process is called invisible. Such economical process surprisingly fits into computational model and the Collective Intelligence definition (Szuba, 2001b,a, 2002). This way it is intended to move from analyzing Free Market using objectual approach i.e. using money, production, transfer of goods, resources, agents, companies, etc. into mental analysis expressed through abstract computational processes. Hence, the paper discloses the concept, the implementation and the initial simulation results of the market simulation system which is targeted for such Collective Intelligence analysis. This system is expected to enable firing Invisible Hand process of simulated Free Market, and to allow on this basis the identification and formalization of computational processes underlying the Collective Intelligence of the market. The paper presents a concept of the simulation model that facilitates an observation of economic processes and enables prediction of the future based on given parameters.