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Model: Interconnected Investment Model

Objective: Equation simplification and asymptotic reduction

Detected agents: 12

Detected Minimization Equations

min Eᵢ = ∑ⱼ Jᵢⱼ (xᵢ - xⱼ)² + λxᵢ² - hᵢxᵢ
min F(ρ) = ∫ V(x)ρ(x)dx + α∫∫ W(x,y)ρ(x)ρ(y)dxdy

Extracted Parameters

Jᵢⱼ : interaction matrix
λ : regularization coefficient
hᵢ : external forcing
α : interaction strength
V(x) : local potential
W(x,y) : pair interaction kernel

Approximation Checklist

  • All minimization equations identified
  • Parameters extracted
  • Constant terms identified
  • Negligible terms identified
  • Functional forms proposed
  • Reduced approximation validated
Approximation AI
I analyzed the minimization equations. Several terms may admit simplifying assumptions or asymptotic approximations.

Proposed Approximations

Mean-field approximation
Replace local interactions by averaged interaction terms.
Small fluctuation regime
Assume second-order fluctuations remain negligible.

Reduced Approximate Model

Assume λ = constant

Neglect O(δ²) fluctuation terms

Linearized interaction:

F(x) ≈ ax + b

∂ρ/∂t = -∇·(ρ(ax+b)) + DΔρ

Final Approximation