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Agent-Based Modeling: The Right Mathematics for the Social Sciences?

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  • Borrill, Paul L.
  • Tesfatsion, Leigh

Abstract

This study provides a basic introduction to agent-based modeling (ABM) as a powerful blend of classical and constructive mathematics, with a primary focus on its applicability for social science research. The typical goals of ABM social science researchers are discussed along with the culture-dish nature of their computer experiments. The applicability of ABM for science more generally is also considered, with special attention to physics. Finally, two distinct types of ABM applications are summarized in order to illustrate concretely the duality of ABM: Real-world systems can not only be simulated with verisimilitude using ABM; they can also be efficiently and robustly designed and constructed on the basis of ABM principles.

Suggested Citation

  • Borrill, Paul L. & Tesfatsion, Leigh, 2010. "Agent-Based Modeling: The Right Mathematics for the Social Sciences?," Staff General Research Papers Archive 31674, Iowa State University, Department of Economics.
    • Handle: RePEc:isu:genres:31674
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    References listed on IDEAS

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    5. Li, Hongyan & Tesfatsion, Leigh, 2009. "ISO Net Surplus Collection and Allocation in Wholesale Power Markets Under Locational Marginal Pricing," Staff General Research Papers Archive 13092, Iowa State University, Department of Economics.
    6. Li, Hongyan & Sun, Junjie & Tesfatsion, Leigh, 2010. "Testing Institutional Arrangements Via Agent-Based Modeling: A U.S. Electricity Market Example," Staff General Research Papers Archive 13155, Iowa State University, Department of Economics.
    7. Tesfatsion, Leigh & Judd, Kenneth L., 2006. "Handbook of Computational Economics, Vol. 2: Agent-Based Computational Economics," Staff General Research Papers Archive 10368, Iowa State University, Department of Economics.
    8. Leigh Tesfatsion, 2002. "Agent-Based Computational Economics," Computational Economics 0203001, University Library of Munich, Germany, revised 15 Aug 2002.
    9. Nigel Gilbert & Andreas Pyka & Petra Ahrweiler, 2001. "Innovation Networks - a Simulation Approach," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 4(3), pages 1-8.
    10. John B. Davis & D. Wade Hands (ed.), 2011. "The Elgar Companion to Recent Economic Methodology," Books, Edward Elgar Publishing, number 13684.
    11. Leigh Tesfatsion & Kenneth L. Judd (ed.), 2006. "Handbook of Computational Economics," Handbook of Computational Economics, Elsevier, edition 1, volume 2, number 2.
    12. Jason M Barr & Troy Tassier & Leanne J Ussher & Blake LeBaron & Shu-Heng Chen & Shyam Sunder, 2008. "The Future of Agent-Based Research in Economics: A Panel Discussion, Eastern Economic Association Annual Meetings, Boston, March 7, 20081," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 34(4), pages 550-565.
    13. Dawid, Herbert, 2006. "Agent-based Models of Innovation and Technological Change," Handbook of Computational Economics, in: Leigh Tesfatsion & Kenneth L. Judd (ed.), Handbook of Computational Economics, edition 1, volume 2, chapter 25, pages 1235-1272, Elsevier.
    14. Blake LeBaron & Leigh Tesfatsion, 2008. "Modeling Macroeconomies as Open-Ended Dynamic Systems of Interacting Agents," American Economic Review, American Economic Association, vol. 98(2), pages 246-250, May.
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    Cited by:

    1. Eugenio Caverzasi & Antoine Godin, 2013. "Stock-flow Consistent Modeling through the Ages," Economics Working Paper Archive wp_745, Levy Economics Institute.
    2. Leigh Tesfatsion, 2017. "Modeling economic systems as locally-constructive sequential games," Journal of Economic Methodology, Taylor & Francis Journals, vol. 24(4), pages 384-409, October.
    3. Marco Mazzoli & Matteo Morini & Pietro Terna, 2017. "Business Cycle in a Macromodel with Oligopoly and Agents’ Heterogeneity: An Agent-Based Approach," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 3(3), pages 389-417, November.
    4. Mandel, Antoine & Taghawi-Nejad, Davoud & Veetil, Vipin P., 2019. "The price effects of monetary shocks in a network economy," Journal of Economic Behavior & Organization, Elsevier, vol. 164(C), pages 300-316.
    5. Divine Odame APPIAH & Eric Kwabena FORKUO & John Tiah BUGRI, 2015. "Land Use Conversion Probabilities in a Peri-Urban District of Ghana," Chinese Journal of Urban and Environmental Studies (CJUES), World Scientific Publishing Co. Pte. Ltd., vol. 3(03), pages 1-21, September.
    6. Tesfatsion, Leigh, 2017. "Modeling Economic Systems as Locally-Constructive Sequential Games," ISU General Staff Papers 201703280700001022, Iowa State University, Department of Economics.
    7. Naqvi, Asjad, 2017. "Deep Impact: Geo-Simulations as a Policy Toolkit for Natural Disasters," World Development, Elsevier, vol. 99(C), pages 395-418.
    8. Tesfatsion, Leigh, 2017. "Modeling Economic Systems as Locally-Constructive Sequential Games," ISU General Staff Papers 201702180800001022, Iowa State University, Department of Economics.
    9. Stefan Gold & Thomas Chesney & Tim Gruchmann & Alexander Trautrims, 2020. "Diffusion of labor standards through supplier–subcontractor networks: An agent‐based model," Journal of Industrial Ecology, Yale University, vol. 24(6), pages 1274-1286, December.
    10. Wozniak, Marcin, 2016. "Job placement agencies in an artificial labor market," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 10, pages 1-54.
    11. Ali Naqvi & Miriam Rehm, 2014. "A multi-agent model of a low income economy: simulating the distributional effects of natural disasters," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 9(2), pages 275-309, October.
    12. Tesfatsion, Leigh, 2017. "Modeling Economic Systems as Locally-Constructive Sequential Games," ISU General Staff Papers 201704300700001022, Iowa State University, Department of Economics.
    13. An, Li & Grimm, Volker & Sullivan, Abigail & Turner II, B.L. & Malleson, Nicolas & Heppenstall, Alison & Vincenot, Christian & Robinson, Derek & Ye, Xinyue & Liu, Jianguo & Lindkvist, Emilie & Tang, W, 2021. "Challenges, tasks, and opportunities in modeling agent-based complex systems," Ecological Modelling, Elsevier, vol. 457(C).
    14. G. B. Korovin, 2020. "Architecture of the agent-based model for the region’s industrial complex digital transformation," Journal of New Economy, Ural State University of Economics, vol. 21(3), pages 158-174, October.
    15. Фаттахов М.Р., 2013. "Агенто-Ориентированная Модель Социально-Экономического Развития Москвы," Журнал Экономика и математические методы (ЭММ), Центральный Экономико-Математический Институт (ЦЭМИ), vol. 49(2), pages 30-43, апрель.

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    JEL classification:

    • B4 - Schools of Economic Thought and Methodology - - Economic Methodology
    • C6 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D - Microeconomics
    • E - Macroeconomics and Monetary Economics

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