IDEAS home Printed from https://ideas.repec.org/p/arx/papers/1901.08932.html
   My bibliography  Save this paper

Theories and Practice of Agent based Modeling: Some practical Implications for Economic Planners

Author

Listed:
  • Hossein Sabzian
  • Mohammad Ali Shafia
  • Ali Maleki
  • Seyeed Mostapha Seyeed Hashemi
  • Ali Baghaei
  • Hossein Gharib

Abstract

Nowadays, we are surrounded by a large number of complex phenomena ranging from rumor spreading, social norms formation to rise of new economic trends and disruption of traditional businesses. To deal with such phenomena,Complex Adaptive System (CAS) framework has been found very influential among social scientists,especially economists. As the most powerful methodology of CAS modeling, Agent-based modeling (ABM) has gained a growing application among academicians and practitioners. ABMs show how simple behavioral rules of agents and local interactions among them at micro-scale can generate surprisingly complex patterns at macro-scale. Despite a growing number of ABM publications, those researchers unfamiliar with this methodology have to study a number of works to understand (1) the why and what of ABMs and (2) the ways they are rigorously developed. Therefore, the major focus of this paper is to help social sciences researchers,especially economists get a big picture of ABMs and know how to develop them both systematically and rigorously.

Suggested Citation

  • Hossein Sabzian & Mohammad Ali Shafia & Ali Maleki & Seyeed Mostapha Seyeed Hashemi & Ali Baghaei & Hossein Gharib, 2019. "Theories and Practice of Agent based Modeling: Some practical Implications for Economic Planners," Papers 1901.08932, arXiv.org.
    • Handle: RePEc:arx:papers:1901.08932
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/1901.08932
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Garcia, Rosanna & Rummel, Paul & Hauser, John, 2007. "Validating agent-based marketing models through conjoint analysis," Journal of Business Research, Elsevier, vol. 60(8), pages 848-857, August.
    2. Hugues Bersini, 2012. "UML for ABM," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 15(1), pages 1-9.
    3. G. Fagiolo & C. Birchenhall & P. Windrum, 2007. "Empirical Validation in Agent-based Models: Introduction to the Special Issue," Computational Economics, Springer;Society for Computational Economics, vol. 30(3), pages 189-194, October.
    4. Rand, William & Rust, Roland T., 2011. "Agent-based modeling in marketing: Guidelines for rigor," International Journal of Research in Marketing, Elsevier, vol. 28(3), pages 181-193.
    5. Gerald Silverberg & Giovanni Dosi & Luigi Orsenigo, 2000. "Innovation, Diversity and Diffusion: A Self-Organisation Model," Chapters, in: Innovation, Organization and Economic Dynamics, chapter 14, pages 410-432, Edward Elgar Publishing.
    6. Paul Windrum & Giorgio Fagiolo & Alessio Moneta, 2007. "Empirical Validation of Agent-Based Models: Alternatives and Prospects," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 10(2), pages 1-8.
    7. Al-Suwailem, Sami Ibrahim, 2008. "Islamic Economics in a Complex World: Explorations in Agent-based Simulation (Research Paper)," Occasional Papers 238, The Islamic Research and Teaching Institute (IRTI).
    8. Seth Frey & Robert L Goldstone, 2013. "Cyclic Game Dynamics Driven by Iterated Reasoning," PLOS ONE, Public Library of Science, vol. 8(2), pages 1-11, February.
    9. Geoffrey M. Hodgson, 1998. "The Approach of Institutional Economics," Journal of Economic Literature, American Economic Association, vol. 36(1), pages 166-192, March.
    10. Guus ten Broeke & George van Voorn & Arend Ligtenberg, 2016. "Which Sensitivity Analysis Method Should I Use for My Agent-Based Model?," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 19(1), pages 1-5.
    11. William A. Brock & Steven N. Durlauf, 2001. "Discrete Choice with Social Interactions," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 68(2), pages 235-260.
    12. Sandrine Jacob Leal & Mauro Napoletano, 2017. "Market Stability vs. Market Resilience: Regulatory Policies Experiments in an Agent-Based Model with Low- and High-Frequency Trading," Post-Print hal-01768876, HAL.
    13. Axelrod, Robert, 1986. "An Evolutionary Approach to Norms," American Political Science Review, Cambridge University Press, vol. 80(4), pages 1095-1111, December.
    14. Olivier Barreteau, 2003. "Our Companion Modelling Approach," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 6(2), pages 1-1.
    15. Sean Snyder, 2013. "The Simple, the Complicated, and the Complex: Educational Reform Through the Lens of Complexity Theory," OECD Education Working Papers 96, OECD Publishing.
    16. Hossein Sabzian & Alireza Aliahmadi & Adel Azar & Madjid Mirzaee, 2018. "Economic inequality and Islamic Charity: An exploratory agent-based modeling approach," Papers 1804.09284, arXiv.org.
    17. Caplat, Paul & Anand, Madhur & Bauch, Chris, 2008. "Symmetric competition causes population oscillations in an individual-based model of forest dynamics," Ecological Modelling, Elsevier, vol. 211(3), pages 491-500.
    18. Ju-Sung Lee & Tatiana Filatova & Arika Ligmann-Zielinska & Behrooz Hassani-Mahmooei & Forrest Stonedahl & Iris Lorscheid & Alexey Voinov & J. Gareth Polhill & Zhanli Sun & Dawn C. Parker, 2015. "The Complexities of Agent-Based Modeling Output Analysis," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 18(4), pages 1-4.
    19. Tesfatsion, Leigh, 2002. "Agent-Based Computational Economics: Growing Economies from the Bottom Up," ISU General Staff Papers 200201010800001251, Iowa State University, Department of Economics.
    20. Cynthia Nikolai & Gregory Madey, 2009. "Tools of the Trade: A Survey of Various Agent Based Modeling Platforms," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 12(2), pages 1-2.
    21. Funtowicz, Silvio O. & Ravetz, Jerome R., 1994. "The worth of a songbird: ecological economics as a post-normal science," Ecological Economics, Elsevier, vol. 10(3), pages 197-207, August.
    22. Lane, David A, 1993. "Artificial Worlds and Economics, Part II," Journal of Evolutionary Economics, Springer, vol. 3(3), pages 177-197, August.
    23. Koen Frenken, 2006. "Technological innovation and complexity theory," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 15(2), pages 137-155.
    24. Ferrero, Juan C, 2004. "The statistical distribution of money and the rate of money transference," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 341(C), pages 575-585.
    25. Adrian Dragulescu & Victor M. Yakovenko, 2000. "Statistical mechanics of money," Papers cond-mat/0001432, arXiv.org, revised Aug 2000.
    26. Edmund Chattoe-Brown, 2013. "Why Sociology Should Use Agent Based Modelling," Sociological Research Online, , vol. 18(3), pages 31-41, August.
    27. Lane, David A, 1993. "Artificial Worlds and Economics, Part I," Journal of Evolutionary Economics, Springer, vol. 3(2), pages 89-107, May.
    28. Muaz Niazi & Amir Hussain, 2011. "Agent-based computing from multi-agent systems to agent-based models: a visual survey," Scientometrics, Springer;Akadémiai Kiadó, vol. 89(2), pages 479-499, November.
    29. Brian Heath & Raymond Hill & Frank Ciarallo, 2009. "A Survey of Agent-Based Modeling Practices (January 1998 to July 2008)," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 12(4), pages 1-9.
    30. Follmer, Hans & Horst, Ulrich & Kirman, Alan, 2005. "Equilibria in financial markets with heterogeneous agents: a probabilistic perspective," Journal of Mathematical Economics, Elsevier, vol. 41(1-2), pages 123-155, February.
    31. Friederike Wall, 2016. "Agent-based modeling in managerial science: an illustrative survey and study," Review of Managerial Science, Springer, vol. 10(1), pages 135-193, January.
    32. Victor M. Yakovenko & J. Barkley Rosser, 2009. "Colloquium: Statistical mechanics of money, wealth, and income," Papers 0905.1518, arXiv.org, revised Dec 2009.
    33. H. M. Amman & D. A. Kendrick & J. Rust (ed.), 1996. "Handbook of Computational Economics," Handbook of Computational Economics, Elsevier, edition 1, volume 1, number 1.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Julissa Alexandra Galarza-Villamar & Mariette McCampbell & Cees Leeuwis & Francesco Cecchi, 2021. "Adding Emergence and Spatiality to a Public Bad Game for Studying Dynamics in Socio-Ecological Systems (Part I): The Design of Musa-Game for Integrative Analysis of Collective Action in Banana Disease," Sustainability, MDPI, vol. 13(16), pages 1-21, August.
    2. Luba Pascoe & Thomas Clemen & Karen Bradshaw & Devotha Nyambo, 2022. "Review of Importance of Weather and Environmental Variables in Agent-Based Arbovirus Models," IJERPH, MDPI, vol. 19(23), pages 1-24, November.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ngo-Hoang, Dai-Long, 2019. "A research paper of Hossein Sabzian (2019), Theories and Practice of Agent based Modeling: Some practical Implications for Economic Planners, ArXiv, 54p," AgriXiv xutyz, Center for Open Science.
    2. Hossein Sabzian & Alireza Aliahmadi & Adel Azar & Madjid Mirzaee, 2018. "Economic inequality and Islamic Charity: An exploratory agent-based modeling approach," Papers 1804.09284, arXiv.org.
    3. Hossein Sabzian & Mohammad Ali Shafia & Mehdi Ghazanfari & Ali Bonyadi Naeini, 2020. "Modeling the Adoption and Diffusion of Mobile Telecommunications Technologies in Iran: A Computational Approach Based on Agent-Based Modeling and Social Network Theory," Sustainability, MDPI, vol. 12(7), pages 1-36, April.
    4. Flaminio Squazzoni, 2010. "The impact of agent-based models in the social sciences after 15 years of incursions," History of Economic Ideas, Fabrizio Serra Editore, Pisa - Roma, vol. 18(2), pages 197-234.
    5. Giorgio Fagiolo & Mattia Guerini & Francesco Lamperti & Alessio Moneta & Andrea Roventini, 2017. "Validation of Agent-Based Models in Economics and Finance," LEM Papers Series 2017/23, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    6. Bert, Federico E. & Rovere, Santiago L. & Macal, Charles M. & North, Michael J. & Podestá, Guillermo P., 2014. "Lessons from a comprehensive validation of an agent based-model: The experience of the Pampas Model of Argentinean agricultural systems," Ecological Modelling, Elsevier, vol. 273(C), pages 284-298.
    7. Garavaglia, Christian, 2010. "Modelling industrial dynamics with "History-friendly" simulations," Structural Change and Economic Dynamics, Elsevier, vol. 21(4), pages 258-275, November.
    8. Lamperti, Francesco & Roventini, Andrea & Sani, Amir, 2018. "Agent-based model calibration using machine learning surrogates," Journal of Economic Dynamics and Control, Elsevier, vol. 90(C), pages 366-389.
    9. Giorgio Fagiolo & Paul Windrum & Alessio Moneta, 2006. "Empirical Validation of Agent Based Models: A Critical Survey," LEM Papers Series 2006/14, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    10. repec:hal:spmain:info:hdl:2441/20hflp7eqn97boh50no50tv67n is not listed on IDEAS
    11. Giovanni Dosi & Andrea Roventini, 2019. "More is different ... and complex! the case for agent-based macroeconomics," Journal of Evolutionary Economics, Springer, vol. 29(1), pages 1-37, March.
    12. Paul Windrum & Giorgio Fagiolo & Alessio Moneta, 2007. "Empirical Validation of Agent-Based Models: Alternatives and Prospects," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 10(2), pages 1-8.
    13. Scheller, Fabian & Johanning, Simon & Bruckner, Thomas, 2019. "A review of designing empirically grounded agent-based models of innovation diffusion: Development process, conceptual foundation and research agenda," Contributions of the Institute for Infrastructure and Resources Management 01/2019, University of Leipzig, Institute for Infrastructure and Resources Management.
    14. Costas Efthimiou & Adam Wearne, 2016. "Household Income Distribution in the USA," Papers 1602.06234, arXiv.org.
    15. Juan Manuel Larrosa, 2016. "Agentes computacionales y análisis económico," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 18(34), pages 87-113, January-J.
    16. Gianluca Capone & Franco Malerba & Richard R. Nelson & Luigi Orsenigo & Sidney G. Winter, 2019. "History friendly models: retrospective and future perspectives," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(1), pages 1-23, March.
    17. repec:hal:spmain:info:hdl:2441/13thfd12aa8rmplfudlgvgahff is not listed on IDEAS
    18. Gomes, Sharlene L. & Hermans, Leon M. & Thissen, Wil A.H., 2018. "Extending community operational research to address institutional aspects of societal problems: Experiences from peri-urban Bangladesh," European Journal of Operational Research, Elsevier, vol. 268(3), pages 904-917.
    19. Colasante, Annarita, 2016. "Evolution of Cooperation in Public Good Game," MPRA Paper 72577, University Library of Munich, Germany.
    20. Cristiano Antonelli, 2011. "The Economic Complexity of Technological Change: Knowledge Interaction and Path Dependence," Chapters, in: Cristiano Antonelli (ed.), Handbook on the Economic Complexity of Technological Change, chapter 1, Edward Elgar Publishing.
    21. Colasante, Annarita, 2017. "Selection of the distributional rule as an alternative tool to foster cooperation in a Public Good Game," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 468(C), pages 482-492.
    22. G. Fagiolo & A. Roventini, 2009. "On the Scientific Status of Economic Policy: A Tale of Alternative Paradigms," Voprosy Ekonomiki, NP Voprosy Ekonomiki, issue 6.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:1901.08932. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.