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Agent-Based Computational Economics Author info | Abstract | Publisher info | Download info | Related research | Statistics Leigh Tesfatsion (Iowa State University)
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Agent-based computational economics (ACE) is the computational study of economies modeled as evolving systems of autonomous interacting agents. Starting from initial conditions, specified by the modeler, the computational economy evolves over time as its constituent agents repeatedly interact with each other and learn from these interactions. ACE is therefore a bottom-up culture-dish approach to the study of economic systems. This study discusses the key characteristics and goals of the ACE methodology. Eight currently active research areas are highlighted for concrete illustration. Potential advantages and disadvantages of the ACE methodology are considered, along with open questions and possible directions for future research.
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Paper provided by EconWPA in its series Computational Economics with number
0203001.
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Length: 30 pages
Date of creation: 15 Mar 2002Date of revision:
15 Aug 2002Handle: RePEc:wpa:wuwpco:0203001Note: Type of Document - Acrobat PDF; prepared on IBM PC - PC-TEX; to print on HP/PostScript/; pages: 30; figures: NoneContact details of provider: Web page: http://129.3.20.41
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Keywords: Agent-based computational economics ; Autonomous agents ; Interaction networks ; Learning ; Evolution ; Mechanism design ; Computational economics ; Object-oriented programming. ; Other versions of this item:
Find related papers by JEL classification: B4 - Schools of Economic Thought and Methodology - - Economic Methodology C0 - Mathematical and Quantitative Methods - - General D0 - Microeconomics - - General E0 - Macroeconomics and Monetary Economics - - General
This paper has been announced in the following NEP Reports :
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: David McFadzean & Deron Stewart & Leigh Tesfatsion, 2000.
"A Computational Laboratory for Evolutionary Trade Networks ,"
Computational Economics
0004004, EconWPA.
[Downloadable!]
Other versions:
McFadzean, David & Stewart, Deron & Tesfatsion, Leigh, 2000.
"A Computational Laboratory for Evolutionary Trade Networks ,"
Staff General Research Papers
1912, Iowa State University, Department of Economics.
[Downloadable!] McFadzean, David & Stewart, Deron & Tesfatsion, Leigh, 2002.
"A Computational Laboratory for Evolutionary Trade Networks ,"
Staff General Research Papers
2049, Iowa State University, Department of Economics.
Kirman, Alan P. & Vriend, Nicolaas J., 2001.
"Evolving market structure: An ACE model of price dispersion and loyalty ,"
Journal of Economic Dynamics and Control ,
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"Market Power and Efficiency in a Computational Electricity Market with Discriminatory Double-Auction Pricing ,"
Staff General Research Papers
1952, Iowa State University, Department of Economics.
[Downloadable!]
Other versions:
Nicolaisen, James & Petrov, Valentin & Tesfatsion, Leigh, 2002.
"Market Power and Efficiency in a Computational Electricity Market with Discriminatory Double-Auction Pricing ,"
Staff General Research Papers
2050, Iowa State University, Department of Economics.
[Downloadable!] James Nicolaisen & Valentin Petrov & Leigh Tesfatsion, 2000.
"Market Power and Efficiency in a Computational Electricity Market with Discriminatory Double-Auction Pricing ,"
Computational Economics
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"Agent-Based Computational Economics: Growing Economies from the Bottom Up ,"
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Howitt, Peter & Clower, Robert, 2000.
"The emergence of economic organization ,"
Journal of Economic Behavior & Organization ,
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Elinor Ostrom, 2000.
"Collective Action and the Evolution of Social Norms ,"
Journal of Economic Perspectives ,
American Economic Association, vol. 14(3), pages 137-158, Summer.
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Leigh TESFATSION, 1995.
"How Economists Can Get Alife ,"
Economic Report
37, Iowa State University Department of Economics.
[Downloadable!]
Erev, Ido & Roth, Alvin E, 1998.
"Predicting How People Play Games: Reinforcement Learning in Experimental Games with Unique, Mixed Strategy Equilibria ,"
American Economic Review ,
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Arifovic, Jasmina & Eaton, Curtis, 1995.
"Coordination via Genetic Learning ,"
Computational Economics ,
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Other versions: Arifovic, Jasmina, 1996.
"The Behavior of the Exchange Rate in the Genetic Algorithm and Experimental Economies ,"
Journal of Political Economy ,
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[Downloadable!] (restricted)
LeBaron, Blake, 2000.
"Agent-based computational finance: Suggested readings and early research ,"
Journal of Economic Dynamics and Control ,
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[Downloadable!] (restricted)
Robert E. Marks, .
"Evolved Perception and Behaviour in Oligopolies ,"
Computing in Economics and Finance 1996
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[Downloadable!]
Other versions: Vriend, Nicolaas J, 1995.
"Self-Organization of Markets: An Example of a Computational Approach ,"
Computational Economics ,
Springer, vol. 8(3), pages 205-31, August.
Marks, R E, 1992.
"Breeding Hybrid Strategies: Optimal Behaviour for Oligopolists ,"
Journal of Evolutionary Economics ,
Springer, vol. 2(1), pages 17-38, March.
Chen, Shu-Heng & Yeh, Chia-Hsuan, 2001.
"Evolving traders and the business school with genetic programming: A new architecture of the agent-based artificial stock market ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 25(3-4), pages 363-393, March.
[Downloadable!] (restricted)
Bower, John & Bunn, Derek, 2001.
"Experimental analysis of the efficiency of uniform-price versus discriminatory auctions in the England and Wales electricity market ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 25(3-4), pages 561-592, March.
[Downloadable!] (restricted)
Alvin E. Roth & Axel Ockenfels, 2002.
"Last-Minute Bidding and the Rules for Ending Second-Price Auctions: Evidence from eBay and Amazon Auctions on the Internet ,"
American Economic Review ,
American Economic Association, vol. 92(4), pages 1093-1103, September.
[Downloadable!]
Other versions: Epstein, Joshua M, 2001.
"Learning to Be Thoughtless: Social Norms and Individual Computation ,"
Computational Economics ,
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J. Doyne Farmer & Andrew W. Lo, 1999.
"Frontiers of Finance: Evolution and Efficient Markets ,"
Working Papers
99-06-039, Santa Fe Institute.
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"Complex Landscapes in Economic Geography ,"
American Economic Review ,
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Arifovic, Jasmina, 1994.
"Genetic algorithm learning and the cobweb model ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 18(1), pages 3-28, January.
[Downloadable!] (restricted)
Leigh TESFATSION, 1995.
"A Trade Network Game With Endogenous Partner Selection ,"
Economic Report
36, Iowa State University Department of Economics.
[Downloadable!]
Other versions: Tay, Nicholas S. P. & Linn, Scott C., 2001.
"Fuzzy inductive reasoning, expectation formation and the behavior of security prices ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 25(3-4), pages 321-361, March.
[Downloadable!] (restricted)
Francesco Luna, .
"Computable Learning, Neural Networks and Institutions ,"
Computing in Economics and Finance 1996
_037, Society for Computational Economics.
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Vriend, Nicolaas J., 2000.
"An illustration of the essential difference between individual and social learning, and its consequences for computational analyses ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 24(1), pages 1-19, January.
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Gode, Dhananjay K & Sunder, Shyam, 1993.
"Allocative Efficiency of Markets with Zero-Intelligence Traders: Market as a Partial Substitute for Individual Rationality ,"
Journal of Political Economy ,
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Klos, Tomas B. & Nooteboom, Bart, 2001.
"Agent-based computational transaction cost economics ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 25(3-4), pages 503-526, March.
[Downloadable!] (restricted)
Andersson, Martin R. & Sandholm, Tuomas W., 2001.
"Leveled commitment contracts with myopic and strategic agents ,"
Journal of Economic Dynamics and Control ,
Elsevier, vol. 25(3-4), pages 615-640, March.
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W. Brian Arthur & John H. Holland & Blake LeBaron & Richard Palmer & Paul Taylor, 1996.
"Asset Pricing Under Endogenous Expectation in an Artificial Stock Market ,"
Working Papers
96-12-093, Santa Fe Institute.
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"Money as a medium of exchange in an economy with artificially intelligent agents ,"
Journal of Economic Dynamics and Control ,
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[Downloadable!] (restricted)
Other versions: repec:att:wimass:199010 is not listed on IDEAS
Gerard Weisbuch & Alan Kirman & Dorothea Herreiner, 1995.
"Market Organization ,"
Working Papers
95-11-102, Santa Fe Institute.
Other versions:
Weisbuch, G. & Kirman, A.P. & Herreiner, D., 1996.
"Market Organisation ,"
G.R.E.Q.A.M.
96a20, Universite Aix-Marseille III.
Weisbuch, Gerard & Alan Kirman & Dorothea K. Herreiner, 1996.
"Market Organization ,"
Discussion Paper Serie B
391, University of Bonn, Germany.
[Downloadable!]
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.) This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page .
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