This paper addresses the question of why, in spite of its recent success, behavioral economics does not influence most discussions about how economic policy ought to be made. Failing to penetrate into contemporary discourse on leading policy issues is a serious problem, because behavioral techniques often point to policy prescriptions that are at odds with the prescriptions which follow from mo...

According to Network Effect literature network externalities lead to market failure due to Pareto-inferior coordination results. We show that the assumptions and simplifications implicitly used for modeling standardization processes fail to explain the real-world variety of diffusion courses in today's dynamic IT markets and derive requirements for a more general model of network effects. We ar...

EOS is a framework and computational laboratory for agent-based computational economics developed in spring 2009 by Chris Rucinski ’10, Ye “Cody” Wang ’10, and myself under the guidance of Professor Steiglitz. Here, we build upon this earlier EOS work by developing a stable baseline model and accompanying agent implementations as well as an I/O package to support both development and experiment...

A model of surplus values within information ecosystems is presented. The model is based on the classical definition of surplus value. However, as this definition was developed within a manufacturing industry context, some modifications are necessary to adopt it to the context of information ecosystems, e.g., by taking into account that products are “virtual” rather than physical. Just as in ag...

Terming a specific approach to economics agent-based may appear paradoxical. Isn’t human behavior the foundation of economics and shouldn’t all economic theory be based on agents behavior in some sense? This, at least, is what conventional economic theory has been claiming since the 1970’s. In this introduction we shall argue that agent-based computational economics (ACE) allows agents and espe...

Adherence to medications is poor and suboptimal in many chronic diseases. Nonadherence can reduce treatment effectiveness and can have an impact on healthcare costs. As a consequence, it may alter the cost-effectiveness of drug therapies. This article emphasizes the importance of integrating medication compliance and persistence into pharmacoeconomic evaluations, using osteoporosis as an exampl...

Because economics is the science of how resources are allocated by individuals and by collective institutions like firms and markets, the psychology of individual behavior should underlie and inform economics, much as physics informs chemistry; archaeology informs anthropology; or neuroscience informs cognitive psychology. However, economists routinely—and proudly—use models that are grossly in...

Wireless communication relies on access to the radiocommunications spectrum. A series of high-priced spectrum auctions has indicated that there is a scarcity or an inefficient use of spectrum resources. This paper presents an Agent-based Computational Economics (ACE) model designed to study the secondary use spectrum market, which improves spectrum usage by allowing incumbent spectrum users to ...

This paper describes a simulation approach for modelling decisionmaking processes under incomplete and imperfect information in Agentbased Computational Economics (ACE). The main idea is to represent decision-making in a model-free framework that can be applied to a larger set of simulation problems, not just the domain modelled. The method translates some basic sociopsychological concepts from...

The Knowledge Engineering Review is an outstanding journal in Computer Science. The guest editors and contributors to this Special Issue are economists. Why is this so? In recent years there has been a growing dialogue between economists and computer scientists, to our mutual benefit. The Special Issue is devoted to nine papers in which economists survey aspects of the field of agent-based comp...