Economics As An Agent-based Complex System

by Deguchi, H.

• ISBN13: 9784431209850
• ISBN10: 4431209859
• Format: Hardcover
• Copyright: 2004-03-29
• Publisher: Springer Verlag

Summary

In agent-based modeling the focus is very much on agent-based simulation, as simulation is a very important tool for agent-based modeling. We also use agent-based simulation in this book with a stress on the mathematical foundation of agent-based modeling. We introduce two original mathematical frameworks, a theory of SLD (Social Learning Dynamics) and an axiomatic theory of economic exchange (Exchange Algebra) among agents. Exchange algebra gives bottom-up reconstruction of SNA (System of National Accountings). SLD provides the concept of indirect control of socio-economic systems to manage structural change and its stability. We also compare agent-based simulation with gaming simulation and investigate the epistemological foundation of agent-based modeling.

Table of Contents

Preface	V
Chapter 1 Systems Description and Models in Economics
Purpose of This Chapter	1	(1)
1.1 A Systems Description of Economics Systems	1	(2)
1.2 Paradigm Shift	3	(1)
1.3 Conception of This Book	4	(1)
1.4 Methodological Issue	5	(2)
1.5 Three Types of Realities	7	(2)
1.6 Beyond the Systems View of Natural Science	9	(1)
1.7 An Epistemological Framework for a Poly Agent System	10	(3)
Chapter 2 Mathematical Research of Evolution and Structural Change
Social Learning Dynamics and Its Bifurcation
Aim of This Chapter	13	(1)
2.1 Structural Change and Bifurcation in Social Sciences	13	(3)
2.2 Game Theory and Evolutionary Games	16	(3)
2.3 Social Learning Dynamics	19	(3)
2.4 Asymmetrical Social Learning Dynamics	22	(3)
Chapter 3 A Social and Organizational Learning Model of Decision Making
Application of SLD and Agent Based Simulation
Purpose of This Chapter	25	(1)
3.1 Indirect Control	25	(3)
3.2 Norm Formation, Mutual Commitment and Structural Change	28	(2)
3.3 Social Learning Dynamics of the Norm Game	30	(5)
3.4 Centralized and Hierarchical Commitment and Support	35	(4)
3.4.1 Type of Commitments	35	(1)
3.4.2 Educational Effect and Supporting Commitment	36	(3)
3.5 The Historical Change of Social Commitment Structure	39	(2)
3.6 Commitment and Learning Rationality	41	(2)
Chapter 4 The Tragedy of the Commons and Its Agent Based and Gaming Modeling
Aim of This Chapter	43	(1)
4.1 Gaming Simulation and ABM	43	(1)
4.2 Environment Management Gaming	44	(1)
4.3 How to Play Environment Management Gaming	45	(2)
4.4 The Facilitator's Guide of Environment Management Gaming	47	(5)
(1) Purpose of the Facilitator's Guide	47	(1)
(2) Assumption	48	(1)
(3) Preparation of Gaming	48	(1)
(4) Reproduction Rate	48	(3)
(5) Gaming Termination	51	(1)
(6) Institutional Design	52	(1)
(7) Debriefing	52	(1)
4.5 Human Gaming Simulation of the Commons	52	(2)
4.6 Agent Based Simulation and Classifier	54	(2)
4.7 Agent Based Simulation of the Commons	56	(2)
4.8 Agent Based Simulation of the Commons	58	(9)
4.8.1 Agent Based Simulation and Fact Finding	58	(1)
4.8.2 Change of Value	58	(2)
4.8.3 Tax and Subsidy as Institutional Mechanisms of Agent Society	60	(4)
4.8.4 Random Strategy and Docking Method	64	(3)
Chapter 5 State Space Complexity and Exchange Algebra
Purpose of This Chapter	67	(1)
5.1 Introduction	67	(3)
5.2 Axiomatic Foundation of Economic Exchange	70	(14)
5.3 Exchange Algebra	84	(10)
5.3.1 Concept of Exchange and Economics	84	(1)
5.3.2 Redundant Algebra	84	(4)
5.3.3 Exchange Algebra	88	(6)
5.4 Concluding Remarks	94	(1)
Chapter 6 The National Economic Field and Algebraic Reconstruction of SNA
Aim of This Chapter	95	(1)
6.1 The Virtual Economy	95	(1)
6.2 The Structure of Economic Field and SNA	96	(4)
6.3 Classification of Transactions	100	(32)
6.3.1 Introduction	100	(3)
6.3.2 Main Decision Making	103	(7)
(6.3.2.1) [Price[e](t): Decision Making]	103	(1)
(6.3.2.2) [Material Purchase, Production, Selling: Decision Making]	103	(3)
(6.3.2.3) [Equipment Investments: Decision Making of Buying Machinery]	106	(1)
(6.3.2.4) [Employment: Decision Making for Wages and Numbers in Employment]	106	(1)
(6.3.2.5) [Financing: Decision Making]	107	(3)
(6.3.2.6) [Financial Parameters: Decision Making]	110	(1)
(6.3.2.7) [Government: Policy Making]	110	(1)
6.3.3 Accompanying Decision Making	110	(17)
(6.3.3.1) [Government Production and Consumption]	110	(1)
(6.3.3.2) [Household Consumption Expenditure]	110	(1)
(6.3.3.3) [Depreciation and Scrapping of Equipment]	110	(1)
(6.3.3.4) [The Adjustment of Value Added Depending on the Change of Product Stock Price]	111	(1)
(6.3.3.5) [Income Transfer by the Payment of Interest and Tax]	112	(2)
(6.3.3.6) [The Issue and Redemption of Central Bank Notes]	114	(1)
(6.3.3.7) Transfer Transactions	114	(13)
6.3.4 Bottom Up Construction of Macro Economic Variables	127	(7)
(6.3.4.1) [Sector-Deposit: S(ω)]	127	(2)
(6.3.4.2) [Sector-Investment: I(ω)]	129	(2)
(6.3.4.3) [Sector-Value added: Y(ω)]	131	(1)
(6.3.4.4) [Sector-Consumption: C(ω)]	131	(1)
(6.3.4.5) [Sector-Export & Import: EX[e](ω), IM[e](ω)]	131	(1)
(6.3.4.6) [Macro National Economic Variables]	132	(1)
6.4 National Economic Field: Aggregation	132	(2)
6.5 National Economic Field and Bottom Up Reconstruction of SNA	134	(30)
6.5.1 Sector-National Economy Field: Flow Quantities	134	(28)
6.5.2 Sector-National Economy Field: Stock Quantities	162	(2)
6.6 Integrated National Economic Field	164	(8)
6.6.1 Integrated National Economy Field: Flow Quantities	164	(2)
6.6.2 Integrated National Economic Field: Stock Quantities	166	(1)
6.6.3 Basic Identity Equation among Macro Economic Variables	167	(5)
6.7 Conclusion	172	(1)
Chapter 7 Gaming Simulation and the Dynamics of a Virtual Economy
Aim of This Chapter	173	(1)
7.1 Introduction	173	(1)
7.2 Assumption of Virtual Economy Gaming	174	(2)
7.3 Three Types of Gaming Simulation for a Virtual Economy	176	(6)
7.3.1 Dictator's View Model	176	(1)
7.3.2 Bird's Eye View Model	176	(4)
7.3.3 Human Gaming of a Bird's Eye View Model	180	(2)
7.4 Multi Player's Gaming Model	182	(2)
7.5 The Failure and Success of Economic Growth by Gaming	184	(3)
(1) A Case of Failure: Crash	184	(1)
(2) A Successful Case	185	(2)
7.6 A Multiplier Analysis of a Virtual Economy	187	(2)
7.7 Agent Based Simulation of Bird's Eye View Model	189	(1)
7.8 Long Term Growth Path	190	(4)
7.8.1 Maximizing Consumption Utility Case	190	(2)
7.8.2 Maximizing Investment Utility Case	192	(2)
7.9 Conclusion	194	(3)
Chapter 8 Network Oriented Industrial Structures
Aim of This Chapter	197	(1)
8.1 What Is a Network?	197	(3)
8.1.1 A Network as a Platform	197	(2)
8.1.2 The Concept of a Network in Sociology. Economics, and Business Administration	199	(1)
8.2 Industrial Networks in the Software Industry	200	(9)
8.2.1 Network Platforms in the Information Industry	200	(4)
8.2.2 Industrial Structure as Connections of Objects	204	(2)
8.2.3 Knowledge Oriented Transformation in the Computer Industry	206	(3)
8.3 Networks of Medium and Small Enterprises	209	(4)
8.3.1 An Industrial Agglomeration Network	209	(3)
8.3.2 Providing an Industrial Agglomeration Network with Information Capabilities	212	(1)
8.4 The Merits of a Network and Networks of Medium and Small Companies	213	(4)
8.4.1 Inequalities that Reveal the Merits of Networks	213	(1)
8.4.2 Two Possibilities of Knowledge Oriented Transformation of the Industry and the Centralization and Distribution of Knowledge	214	(2)
8.4.3 Open Technology Society	216	(1)
Notes	217	(2)
Chapter 9 Learning Dynamics in Platform Externality
9.1 Platform Concept	219	(3)
9.2 Platform Externality	222	(1)
9.3 Model of Platform Externality and Lock In	223	(8)
9.4 Bifurcation Analysis of Social Learning Dynamics	231	(1)
9.5 Platform Goods and Technological Innovation	232	(8)
9.5.1 Technological Innovation and the Product Lifecycle	232	(2)
9.5.2 Examples of Platform Goods and Technological Innovation	234	(4)
(1) Electric Power Network	234	(1)
(2) ADSL Service	234	(1)
(3) Game Machine Market and Competition among Business Models of the Market	235	(1)
(4) Platform of Distribution Industry	236	(1)
(5) Case Study of the Photocopier Market	236	(1)
(6) Microsoft OS and Network Strategy	237	(1)
9.5.3 The Technological Innovation Strategy of Platform Providing Companies	238	(1)
(1) Competition of Service Goods	238	(1)
(2) Competition among Platform Goods	238	(1)
9.5.4 Institutional Design of a Platform-type Industry Structure	239	(1)
9.6 Cultural Platforms	240	(5)
9.6.1 Introduction	240	(1)
9.6.2 Language and Culture as Platform Goods	240	(1)
9.6.3 Competition and Coexistence of Cultural Elements	241	(1)
9.6.4 Design of a New Civilization	242	(3)
References	245	(10)
Index	255