IDEAS home Printed from
   My bibliography  Save this paper

How appropriate are myopic optimization models to predict decision behaviour: A comparison between agent-based models and business management games


  • Appel, Franziska
  • Musshoff, Oliver


Agent-based models (ABM) are used in many cases of policy assessment in agriculture. But the behavioural assumptions of these models consider farmers as myopic optimizing profit maximizers. In this contribution we compare the behaviour of myopic computer agents with the behaviour of students playing a multi period business management game. We aim to answer the question, how far are agent-based models valid to map “real” human behaviour, so that ABM can be used well for policy impact assessment.

Suggested Citation

  • Appel, Franziska & Musshoff, Oliver, 2011. "How appropriate are myopic optimization models to predict decision behaviour: A comparison between agent-based models and business management games," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 115994, European Association of Agricultural Economists.
  • Handle: RePEc:ags:eaae11:115994

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Happe, Kathrin & Balmann, Alfons & Kellermann, Konrad & Sahrbacher, Christoph, 2008. "Does structure matter? The impact of switching the agricultural policy regime on farm structures," Journal of Economic Behavior & Organization, Elsevier, vol. 67(2), pages 431-444, August.
    2. Sandri, Serena & Schade, Christian & Mußhoff, Oliver & Odening, Martin, 2010. "Holding on for too long? An experimental study on inertia in entrepreneurs' and non-entrepreneurs' disinvestment choices," Journal of Economic Behavior & Organization, Elsevier, vol. 76(1), pages 30-44, October.
    3. Balmann, Alfons & Kellermann, Konrad & Larsen, Karin & Sandri, Serena & Schade, Christian, 2010. "Coordination and allocation on land markets under increasing scale economies and heterogeneous actors - An experimental study," 114th Seminar, April 15-16, 2010, Berlin, Germany 61093, European Association of Agricultural Economists.
    4. Kathrin Happe, 2005. "Agricultural policies and farm structures - agent-based simulation and application to EU-policy reform," Others 0504011, EconWPA.
    5. Musshoff, Oliver & Hirschauer, Norbert & Wassmuss, Harm, 2009. "The Role of Bounded Rationality in Farm Financing Decisions – First Empirical Evidence –," 2009 Conference, August 16-22, 2009, Beijing, China 51545, International Association of Agricultural Economists.
    Full references (including those not matched with items on IDEAS)


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

    Cited by:

    1. Dimitris Kremmydas, 2012. "Agent based modeling for agricultural policy evaluation: A review," Working Papers 2012-3, Agricultural University of Athens, Department Of Agricultural Economics.

    More about this item


    Agent-based models; business management games; policy impact analysis; Research Methods/ Statistical Methods; C63; C93; D22; Q18;

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • C93 - Mathematical and Quantitative Methods - - Design of Experiments - - - Field Experiments
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • Q18 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Policy; Food Policy

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:ags:eaae11:115994. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.