Agent-based Versus Macroscopic Modeling of Competition and Business Processes in Economics

Abstract

Simulation serves as a third way of doing science, in contrast to both induction and deduction. The web based modeling may considerably facilitate the execution of simulations by other people. We present examples of agent-based and stochastic models of competition and business processes in economics. We start from as simple as possible models, which have microscopic, agent-based, versions and macroscopic treatment in behavior. Microscopic and macroscopic versions of herding model proposed by Kirman and Bass diffusion of new products are considered in this contribution as two basic ideas.

References in corpus (2)

• 1/f noise from nonlinear stochastic differential equations
• Interplay between positive feedbacks in the generalized CEV process

Cited by in corpus (5)

• Agent based reasoning for the non-linear stochastic models of long-range memory
• The class of nonlinear stochastic models as a background for the bursty behavior in financial markets
• Order book model with herd behavior exhibiting long-range memory
• Agent-based Versus Macroscopic Modeling of Competition and Business Processes in Economics and Finance
• Fluctuation analysis of the three agent groups herding model