The Many Faces of Agent-Based Computational Economics: Ecology of Agents, Bottom-Up Approaches and Technical Breakthrough.

35 Pages Posted: 20 Jun 2019

See all articles by Sylvain Mignot

Sylvain Mignot

Catholic University of Lille

Annick Vignes

Ecole des Ponts ParisTech

Date Written: June 14, 2019

Abstract

This paper presents an overview of how agent-based computational economics (ACE) can contribute to the study of economic systems both at the macro and the micro level. It highlights the way these models can improve our understanding of social interactions and coordination mechanisms and bring into light the complex dependencies between the micro and the macro level. In a first part, the differences and the complementary nature between ACE and other quantitative methods (orthodox and coming from other disciplines) are underlined. A second part presents the importance of ACE for a better understanding of the functioning of markets. ABM allows to simulate heterogeneous agents and different types of interactions, between individuals, between individuals and institutions, between institutions. The specific characteristics of the goods are identified and the market design can vary. Based on the analysis of various markets, this discussion brings fresh insights to a broader and very long-standing debate about the conditions of efficiency of market structures.

Keywords: agent-based model; social interactions; heterogeneity

JEL Classification: B41, C60, C63

Suggested Citation

Mignot, Sylvain and Vignes, Annick, The Many Faces of Agent-Based Computational Economics: Ecology of Agents, Bottom-Up Approaches and Technical Breakthrough. (June 14, 2019). Available at SSRN: https://ssrn.com/abstract=3404033 or http://dx.doi.org/10.2139/ssrn.3404033

Sylvain Mignot

Catholic University of Lille ( email )

Lille
Lille
France

Annick Vignes (Contact Author)

Ecole des Ponts ParisTech ( email )

6-8 avenue Blaise-Pascal, Cité Descartes
Champs-sur-Marne
Marne-la-Vallée Cedex 2, 77455
France

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