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Republication: On the Selection of Adaptive Algorithms in ABM: A Computational-Equivalence Approach

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  • Shu-Heng Chen

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  • Chung-Ching Tai

Abstract

Agent-based Methodology (ABM) is becoming indispensable for the interdisciplinary study of social and economic complex adaptive systems. The essence of ABM lies in the notion of autonomous agents whose behavior may evolve endogenously and can generate and mimic the corresponding complex system dynamics that the ABM is studying. Over the past decade, many Computational Intelligence (CI) methods have been applied to the design of autonomous agents, in particular, their adaptive schemes. This design issue is non-trivial since the chosen adaptive schemes usually have a profound impact on the generated system dynamics. Robert Lucas, one of the most influential modern economic theorists, has suggested using laboratories with human agents, also known as Experimental Economics, to help solve the selection issue. While this is a promising approach, laboratories used in the current experimental economics are not computationally equipped to meet the demands of the selection task. This paper attempts to materialize Lucas’ suggestion by establishing a laboratory where human subjects are equipped with the computational power that satisfies the computational equivalence condition. Copyright Springer Science+Business Media, LLC 2006

Suggested Citation

  • Shu-Heng Chen & Chung-Ching Tai, 2006. "Republication: On the Selection of Adaptive Algorithms in ABM: A Computational-Equivalence Approach," Computational Economics, Springer;Society for Computational Economics, vol. 28(4), pages 313-331, November.
  • Handle: RePEc:kap:compec:v:28:y:2006:i:4:p:313-331
    DOI: 10.1007/s10614-006-9075-x
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    References listed on IDEAS

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    Cited by:

    1. Chen, Shu-Heng & Chie, Bin-Tzong, 2008. "Lottery markets design, micro-structure, and macro-behavior: An ACE approach," Journal of Economic Behavior & Organization, Elsevier, vol. 67(2), pages 463-480, August.

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