Modelling Agent Strategies in Simulated Market Using Iterated Prisoner’s Dilemma

  • Raymond Chiong
Conference paper

DOI: 10.1007/978-3-540-74484-9_59

Part of the Lecture Notes in Computer Science book series (LNCS, volume 4707)
Cite this paper as:
Chiong R. (2007) Modelling Agent Strategies in Simulated Market Using Iterated Prisoner’s Dilemma. In: Gervasi O., Gavrilova M.L. (eds) Computational Science and Its Applications – ICCSA 2007. ICCSA 2007. Lecture Notes in Computer Science, vol 4707. Springer, Berlin, Heidelberg

Abstract

Computer-based simulations have been used extensively to model various economic problems in recent years. However, many of these studies are based on quantitative data that were taken at a certain point of time and thus could be deductive and inappropriate. This paper presents a unique agent based approach that places lower demand on data using Prisoner’s Dilemma (PD), a classical non-zero sum game, to model the complexity within a market environment. We create a model with agents acting as firms to perform transactions among one another with chosen iterated PD (IPD) strategies. Our model shows that cooperation could emerge even though the simulated environment is highly variegated.

Keywords

Iterated prisoner’s dilemma agent strategies market simulation 

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Copyright information

© Springer-Verlag Berlin Heidelberg 2007

Authors and Affiliations

  • Raymond Chiong
    • 1
  1. 1.School of IT & Multimedia, Swinburne University of Technology (Sarawak Campus), Kompleks Negeri, Jalan Simpang Tiga, 93576 Kuching, SarawakMalaysia

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