Agent-Based Modeling in Economics

3 units

Known alternatively as multi-agent or agent-based computational economics, agent-based models (ABMs) developed from artificial intelligence research and have gained renewed interest in economics. Emphasis is on how agent-based models differ from traditional approaches in economics when modeling complex systems of behavior defined by deep heterogeneity, adaptive dynamics, and repeated interaction of large numbers of agents. Using agent-based software (NetLogo) in hands-on exercises and a research proposal will provide additional experience with the modeling techniques covered in class. In considering topics familiar to advanced economics students, we'll demonstrate how ABMs complement the mathematical approach to modeling emphasized elsewhere in the curriculum.