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Published in:
2007 | OriginalPaper | Chapter
Agent-based Computational Economics
Published in: Adaptive Bidding in Single-Sided Auctions Under Uncertainty
Publisher: Birkhäuser Basel
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In this chapter, the theory of Agent-based Computational Economics was introduced. In contrast to classic approaches like General Equilibrium Theory that analyse aggregated supply and demand, agent-based approaches build models from the bottom up. Thereby, characteristic market participants are modelled as software agents that interact with each other. Individual and bounded rational behaviour can be integrated in the model. The study of markets as evolving and dynamic systems of agents gives insight into market research from a new perspective.
Section 3 not only presented basic work on software agents and Multi Agent Systems, but also provided an introduction to simulation theory. In order to conduct research using simulation, it is necessary to build appropriate models and to consider some basic rules. A guide for model building and fundamental rules for simulations were described.