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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
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