Agent-based Versus Macroscopic Modeling of Competition and Business Processes in Economics and Finance
AbstractWe present examples of agent-based and stochastic models of competition and business processes in economics and finance. We start from as simple as possible models, which have microscopic, agent-based, versions and macroscopic treatment in behavior. Microscopic and macroscopic versions of herding model proposed by Kirman and Bass diffusion of new products are considered in this contribution as two basic ideas. Further we demonstrate that general herding behavior can be considered as a background of nonlinear stochastic model of financial fluctuations.
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Bibliographic InfoPaper provided by arXiv.org in its series Papers with number 1202.3533.
Date of creation: Feb 2012
Date of revision: Jun 2012
Publication status: Published in International Journal On Advances in Intelligent Systems, volume 5, pages 111-126, 2012
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