Advantages Of Agent Based Simulation

ABSTRACT: Underlying the current debate between simulation theory and theory theory is the assumption that folk psychological explanations of behavior are causal. Simulationists Martin Davies, Tony Stone, and Jane Heal claim that folk psychological explanations are explanations that make sense of another person by citing the thoughts important to the determination of his behavior on a given occasion. I argue that it is unlikely these explanations will be causal. Davis et al. base their claim on the assumption that a certain isomorphism obtains between the cognitive mechanisms of human beings. Investigation into the nature of the isomorphism required reveals that it

As an avid problem solver, I had often been encouraged to take up Mathematics as a degree. However, I find myself engulfed in an increasingly uncertain economic landscape, where even the most intuitive economists cannot prevent suboptimal outcomes. In Mathematics I enjoy the challenge of finding the right answer, but the challenge of finding the right answer where one might not even exist has drawn me towards economics.

The purpose of this paper is to discuss the Supply and Demand simulation from the student website. The idea is to identify two microeconomic and two macroeconomic principles present in the simulation and to explain why these principles are categorized as macro or microeconomic. The paper will also determine one shift of the supply curve and one shift of the demand curve from the simulation, as well as why these shifts happen. Their impact on the equilibrium price, on decision making, and on quantity will be also analyzed. Then, it will refer to ways in which concepts about supply and demand can be applied in a real life-situation or in the workplace.

The analysis will identify two microeconomics and two macroeconomics principles or concepts from the simulation, and explain why each principle or concept is in the category of macroeconomics or microeconomics. The analysis will identify at least one shift of the supply curve, and one shift of the demand curve from the simulation and what causes the shifts. The analysis will show for each shift, how it would affect the equilibrium price, quantity, and decision making. It will detail application to learned material about supply and demand from the simulation to workplace or real-world product. It will detail how concepts

According to Investopedia, Economics can be defined as The large set of interrelated economic production and consumption activities which aid in determining how scarce resources are allocated. Known this, empowers administrators with the wisdom of how to distribute resources, which areas need to be improved and which are the most important issues at the present. This information is used by policy makers in order to be competent with their responsibilities. Economics tools help policymakers predict how consumers and producers will react if they implement certain policies (Teitelbaum, Wilensky 2013). This means that understanding how the market

Good post and I choose game theory as well. Game theory deals with any situation in which the reward of any one player (called the payoff) depends on not only his or her own actions but also on those of other players in the game. Game theory provides a technique that is suited to investigate such interactions, but as applied in the research literature it is a far more mathematical treatment than might be suggested by our attempt to explain its nature in a simple way.

The most basic premise of modern economics is that people are rational. Rational people grab every opportunity

Along with computer models, mathematical models are used as well. These models are closely associated with computer models because many of the computer models use mathematical models within them. They are “simplified versions of reality that … are especially helpful in cases in which several factors may affect the outcome” (Day, 101). Mathematical models are even more useful than computer ones because they can account for more than one factor. This helps to further improve computer models because scientists don’t have to look at one thing at a time; they have an overall perspective on everything. By using these models, scientists save a great amount of time during their studies. They also save money and animals because they don’t have

Every action I have and will ever take in my life can be analysed through the tools of economics. This is true for many sciences; such as Physics, Chemistry, Biology or Psychology, to name but a few. However what sets Economics apart is how it is perhaps the only science that would significantly and consistently improve the quality of my decisions if applied. Further more, what makes Economics truly outstanding is its diversity and broad range of application.

"Tell me and I'll forget; show me and I may remember; involve me and I'll understand."

The difficulties that were accompanied with this approach led to deviation from the rational model. Complexity of modern organizations and the limited cognitive ability of decision makers were most influencing factors in the deviation . The decision makers were unable to operate under perfect rationality conditions. The information about a decision was mostly unavailable or unclear, and open to different interpretations. Also, the criteria of evaluating alternative solutions were not agreed upon. It also required very long time and a lot of energy of the decision makers to pursue a maximizing outcome. These constrains led to a conclusion that the absolute rational model is unreachable.

My independent research in the field started with my curious interest in the processes of how decisions made by individuals and governments, what are the main factors encouraged them to choose particular decision over other options and the outcomes of those decisions. Then, I started to read theories of great Economists, such as, Keynes, Freidman , Devenport, Kinnerly and Mason who wrote on decision-making and the ability of individual to interpret the information. Additionally, there were theories by De Bondt , Clark , Tversky and Kehnman who argued that human psychology is interconnected with economics which cannot be ignored. Learning those theories and comparing them with the real life happenings, my enthusiasm to get deeper insights of economics increased. Encouraged by this, I have compiled

A model is a representation of a real system and thus, it is an abstraction of the reality 4. “The word “modeling” comes from the Latin word modellus which describes a typical human way of coping with the reality” (Schichl, n.d.). Models can take various forms such as mathematical equation, drawing, computer code, etc. However, there is a common purpose of all designed models, which is to simplify the complexity presented in the real system or problem. Therefore, models usually contain only the main aspects of the real system (not all details).

A model is a representation of a real system and thus, it is an abstraction of the reality 4. “The word “modeling” comes from the Latin word modellus which describes a typical human way of coping with the reality” (Schichl, n.d.). Models can take various forms such as mathematical equation, drawing, computer code, etc. However, there is a common purpose of all designed models, which is to simplify the complexity presented in the real system or problem. Therefore, models usually contain only the main aspects of the real system (not all details).

Quick Quizzes The answers to the Quick Quizzes can also be found near the end of the textbook. 1. The four principles of economic decision making are: (1) people face trade-offs; (2) the cost of something is what you give up to get it; (3) rational people think at the margin; and (4) people respond to incentives. People face trade-offs because to get one thing that they like, they usually have to give up another thing that they like. The cost of something is what you give up to get it, not just in terms of monetary costs but all opportunity costs. Rational people think at the margin by taking an action if and only if the marginal benefit exceeds the marginal