Memory in the Mean Field: Teaching Macro Agents to Remember
Simulation has a bad habit: it becomes realistic just when it becomes too expensive to run. A simple market model can treat everyone as the same kind of agent and still say something useful. A richer model lets agents differ by wealth, income, health, location, battery level, portfolio position, or whatever state variable the domain demands. Then someone remembers that real agents do not see the whole system. Investors see prices, not everyone’s balance sheet. Households see wages and interest rates, not the full wealth distribution. Drivers see traffic signals and congestion, not the hidden intention of every other driver. ...