What is Autonomous Economic Agent (aea)?
Autonomous Economic Agent (AEA) – a software entity created by Fetch.ai and the IOTA foundation that can behave autonomously for the advantage of the owner.
Fetch.ai and the IOTA foundation invented AEAs, which are software entities. They can behave autonomously for the advantage of their owners, without the need for external intervention. Fetch.ai is a blockchain-based artificial intelligence platform that connects with other AI applications to evaluate real-time data and execute appropriate responses.
Connecting AEAs to IOTA Streams enables economic agents to act independently by exchanging and retrieving real-time data. One of the most common applications of AEAs is in financial markets, where quick decisions are required to maximize earnings.
Understanding Autonomous Economic Agent (aea)
Though the term “economic agent” is used in a variety of contexts. It usually refers to someone who engages in economic activities, such as buying and selling financial assets. In a broader sense, an economic agent is any individual, group, or entity that makes decisions about the distribution of scarce resources.
However, in recent years, the term has been broadened to include non-human agents such as bots. Given its expanding relevance in this context, it’s worth delving deeper into the concept of an autonomous economic agent.
In the most fundamental definition, an autonomous agent is one that can control itself. In other words, it is capable of controlling its own behaviors. Furthermore, because an autonomous agent is not subject to outside control or supervision, it must have its own goals that it pursues using self-generated means.
Professional economists readily recognize these characteristics as the cornerstones of any economic theory dealing with rational behavior by economic agents. A fundamental tenet of neoclassical economics is that all economic agents are rational individuals who pursue their own personal goals without any external guidance or influence.
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