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Agent-Based Computational Economics

Author

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  • Leigh Tesfatsion

    (Iowa State University)

Abstract

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.

Suggested Citation

  • Leigh Tesfatsion, 2002. "Agent-Based Computational Economics," Computational Economics 0203001, EconWPA, revised 15 Aug 2002.
  • Handle: RePEc:wpa:wuwpco:0203001
    Note: Type of Document - Acrobat PDF; prepared on IBM PC - PC-TEX; to print on HP/PostScript/; pages: 30; figures: None
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    More about this item

    Keywords

    Agent-based computational economics; Autonomous agents; Interaction networks; Learning; Evolution; Mechanism design; Computational economics; Object-oriented programming.;

    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

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