Agent-based models and industrial organization theory. A price-competition algorithm for agent-based models based on Game Theory

Agent-based models and industrial organization theory. A price-competition algorithm for agent-based models based on Game Theory

Purpose: Simulating markets using agent‐based models must consider pricing. How‐ ever, the strategic nature of prices limits the development of agent‐based models with endogenous price competition. Methods: I propose an agent‐based algorithm based on Game Theory that allows us to simulate the pricing in different markets. I test the algorithm in five theoretical economic models from the industr...

Theory development with agent-based models

Many social phenomena do not result solely from intentional actions by isolated individuals, but rather emerge as the result of repeated interactions among multiple individuals over time. However, such phenomena are often poorly captured by traditional empirical techniques. Moreover, complex adaptive systems are insufficiently described by verbal models. In this paper, we discuss how organizati...

A multi agent method for cell formation with uncertain situation, based on information theory

This paper assumes the cell formation problem as a distributed decision network. It proposes an approach based on application and extension of information theory concepts, in order to analyze informational complexity in an agent- based system, due to interdependence between agents. Based on this approach, new quantitative concepts and definitions are proposed in order to measure the amount of t...

Analysis of the Evolutionary Game Theory in Agent-Based Computational Systems: OPEC Oil-Producing Countries

This study suggests a new method for analysing the behavioral economics issues in the framework of game theory. In this context, bounded rational agents interact with one another in a strategic manner. Therefore, conventional economic modeling techniques are unable to explaine this kind of interactions. In this regard, evolutionary game theory and agent-based modeling are known as the most suit...

Agent Based Models of Competition and Collaboration