# EconAI: Dynamic Persona Evolution and Memory-Aware Agents in Evolving Economic Environments

arXiv: https://arxiv.org/abs/2605.13762 · HTML: https://mlsanity.com/paper/2605.13762/

## Key facts

- No citing papers in the map yet (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 11 of its 43 references that are in the map.
- First posted on arXiv 13 May 2026.

## 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, 11 of 11)

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- [Generative Agents: Interactive Simulacra of Human Behavior](https://mlsanity.com/paper/2304.03442/) (2023)
- [A Survey on Large Language Model based Autonomous Agents](https://mlsanity.com/paper/2308.11432/) (2023)
- [MiniLM: Deep Self-Attention Distillation for Task-Agnostic Compression of Pre-Trained Transformers](https://mlsanity.com/paper/2002.10957/) (2020)
- [The Rise and Potential of Large Language Model Based Agents: A Survey](https://mlsanity.com/paper/2309.07864/) (2023)
- [Social Simulacra: Creating Populated Prototypes for Social Computing Systems](https://mlsanity.com/paper/2208.04024/) (2022)
- [EconAgent: Large Language Model-Empowered Agents for Simulating Macroeconomic Activities](https://mlsanity.com/paper/2310.10436/) (2023)
- [Put Your Money Where Your Mouth Is: Evaluating Strategic Planning and Execution of LLM Agents in an Auction Arena](https://mlsanity.com/paper/2310.05746/) (2023)
- [CGMI: Configurable General Multi-Agent Interaction Framework](https://mlsanity.com/paper/2308.12503/) (2023)
- [The SocialAI School: Insights from Developmental Psychology Towards Artificial Socio-Cultural Agents](https://mlsanity.com/paper/2307.07871/) (2023)
- [Building a Foundation for Data-Driven, Interpretable, and Robust Policy Design using the AI Economist](https://mlsanity.com/paper/2108.02904/) (2021)

## Abstract (arXiv)

The integration of large language models (LLMs) in economic simulations has significantly enhanced agent-based modeling, yet existing frameworks struggle to capture the interplay between short-term optimization and long-term strategic planning. Conventional approaches rely on static data-driven predictions, failing to incorporate adaptive behaviors influenced by economic sentiment, market volatility, and individual goals. To address these limitations, we introduce a novel EconAI framework, incorporating economic sentiment indexing (ESI), memory weighting, and dynamic decision-making mechanisms. By quantifying economic belief, adjusting historical data influence, and linking work-consumption behaviors, EconAI achieves a more human-like decision process, where agents adapt their actions based on both market signals and long-term objectives. It is the first LLM-powered simulation system that can simulate the macro/microeconomic environment and interactions in a unified framework. Empirical evaluations show that EconAI improves stability in economic responses, better replicates real-world employment-consumption cycles, and enhances overall decision robustness. This advancement marks a crucial step towards more realistic, adaptive economic agent simulations.