# Incentives to Build Houses, Trade Houses, or Trade House Building Skills in Simulated Worlds under Various Governing Systems or Institutions: Comparing Multi-agent Reinforcement Learning to Generative Agent-based Model

arXiv: https://arxiv.org/abs/2411.17724 · HTML: https://mlsanity.com/paper/2411.17724/

## Key facts

- Cited by 2 papers in the map (data through 14 Oct 2026).
- Placed in Social simulation and multi-agent debate, one of 16 directions in LLM agents and tool use.
- Builds on 29 of its 76 references that are in the map.
- First posted on arXiv 21 Nov 2024.

## Placed in

- LLM agents and tool use / [Social simulation and multi-agent debate](https://mlsanity.com/agents/social-simulation-and-multi-agent-debate/)

## Builds on (most cited first, 29 of 29)

- [Multi-agent Reinforcement Learning in Sequential Social Dilemmas](https://mlsanity.com/paper/1702.03037/) (2017)
- [Generative agent-based modeling with actions grounded in physical, social, or digital space using Concordia](https://mlsanity.com/paper/2312.03664/) (2023)
- [Cooperate or Collapse: Emergence of Sustainable Cooperation in a Society of LLM Agents](https://mlsanity.com/paper/2404.16698/) (2024)
- [Mindstorms in Natural Language-Based Societies of Mind](https://mlsanity.com/paper/2305.17066/) (2023)
- [Inequity aversion improves cooperation in intertemporal social dilemmas](https://mlsanity.com/paper/1803.08884/) (2018)
- [Scalable Evaluation of Multi-Agent Reinforcement Learning with Melting Pot](https://mlsanity.com/paper/2107.06857/) (2021)
- [Open-Endedness is Essential for Artificial Superhuman Intelligence](https://mlsanity.com/paper/2406.04268/) (2024)
- [Building Machines that Learn and Think with People](https://mlsanity.com/paper/2408.03943/) (2024)
- [A multi-agent reinforcement learning model of common-pool resource appropriation](https://mlsanity.com/paper/1707.06600/) (2017)
- [Autocurricula and the Emergence of Innovation from Social Interaction: A Manifesto for Multi-Agent Intelligence Research](https://mlsanity.com/paper/1903.00742/) (2019)
- [People construct simplified mental representations to plan](https://mlsanity.com/paper/2105.06948/) (2021)
- [A new sociology of humans and machines](https://mlsanity.com/paper/2402.14410/) (2024)
- [MAESTRO: Open-Ended Environment Design for Multi-Agent Reinforcement Learning](https://mlsanity.com/paper/2303.03376/) (2023)
- [Evolving intrinsic motivations for altruistic behavior](https://mlsanity.com/paper/1811.05931/) (2018)
- [Bridging Machine Learning and Mechanism Design towards Algorithmic Fairness](https://mlsanity.com/paper/2010.05434/) (2020)
- [A Review of Cooperation in Multi-agent Learning](https://mlsanity.com/paper/2312.05162/) (2023)
- [Learning Reciprocity in Complex Sequential Social Dilemmas](https://mlsanity.com/paper/1903.08082/) (2019)
- [A learning agent that acquires social norms from public sanctions in decentralized multi-agent settings](https://mlsanity.com/paper/2106.09012/) (2021)
- [Building a Foundation for Data-Driven, Interpretable, and Robust Policy Design using the AI Economist](https://mlsanity.com/paper/2108.02904/) (2021)
- [AI for Global Climate Cooperation: Modeling Global Climate Negotiations, Agreements, and Long-Term Cooperation in RICE-N](https://mlsanity.com/paper/2208.07004/) (2022)
- [Emergent Bartering Behaviour in Multi-Agent Reinforcement Learning](https://mlsanity.com/paper/2205.06760/) (2022)
- [LLM Theory of Mind and Alignment: Opportunities and Risks](https://mlsanity.com/paper/2405.08154/) (2024)
- [Model-free conventions in multi-agent reinforcement learning with heterogeneous preferences](https://mlsanity.com/paper/2010.09054/) (2020)
- [Delegation to autonomous agents promotes cooperation in collective-risk dilemmas](https://mlsanity.com/paper/2103.07710/) (2021)
- [Solving Dynamic Principal-Agent Problems with a Rationally Inattentive Principal](https://mlsanity.com/paper/2202.01691/) (2022)
- [Doing the right thing for the right reason: Evaluating artificial moral cognition by probing cost insensitivity](https://mlsanity.com/paper/2305.18269/) (2023)
- [Learning to Play General-Sum Games Against Multiple Boundedly Rational Agents](https://mlsanity.com/paper/2106.05492/) (2021)
- [A Multi-agent Reinforcement Learning Study of Emergence of Social Classes out of Arbitrary Governance: The Role of Environment](https://mlsanity.com/paper/2310.19903/) (2023)
- [A Multi-agent Reinforcement Learning Study of Evolution of Communication and Teaching under Libertarian and Utilitarian Governing Systems](https://mlsanity.com/paper/2403.02369/) (2024)

## Built on by (most cited first, 2 of 2)

- [Static Sandboxes Are Inadequate: Modeling Societal Complexity Requires Open-Ended Co-Evolution in LLM-Based Multi-Agent Simulations](https://mlsanity.com/paper/2510.13982/) (2025)
- [From Economic Agents to Agentic Economies: A Systems Blueprint for Economic World Models](https://mlsanity.com/paper/2608.06020/) (2026)

## Abstract (arXiv)

It has been shown that social institutions impact human motivations to produce different behaviours, such as amount of working or specialisation in labor. With advancement in artificial intelligence (AI), specifically large language models (LLMs), now it is possible to perform in-silico simulations to test various hypotheses around this topic. Here, I simulate two somewhat similar worlds using multi-agent reinforcement learning (MARL) framework of the AI-Economist and generative agent-based model (GABM) framework of the Concordia. In the extended versions of the AI-Economist and Concordia, the agents are able to build houses, trade houses, and trade house building skill. Moreover, along the individualistic-collectivists axis, there are a set of three governing systems: Full-Libertarian, Semi-Libertarian/Utilitarian, and Full-Utilitarian. Additionally, in the extended AI-Economist, the Semi-Libertarian/Utilitarian system is further divided to a set of three governing institutions along the discriminative axis: Inclusive, Arbitrary, and Extractive. Building on these, I am able to show that among governing systems and institutions of the extended AI-Economist, under the Semi-Libertarian/Utilitarian and Inclusive government, the ratios of building houses to trading houses and trading house building skill are higher than the rest. Furthermore, I am able to show that in the extended Concordia when the central government care about equality in the society, the Full-Utilitarian system generates agents building more houses and trading more house building skill. In contrast, these economic activities are higher under the Full-Libertarian system when the central government cares about productivity in the society. Overall, the focus of this paper is to compare and contrast two advanced techniques of AI, MARL and GABM, to simulate a similar social phenomena with limitations.
