The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Agent-Based Models

  • Scott E. Page
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_1992

Abstract

Agent-based models consist of purposeful agents who interact in space and time and whose micro-level interactions create emergent patterns. Agent-based models consist not of real people but of computational objects that interact according to rules. The four primary features of agent-based models – learning, networks, externalities, and heterogeneity – though previously far from neoclassical economics, have become part of the mainstream. Agent-based models allow us to consider richer environments that include these features with greater fidelity than do existing techniques. They occupy a middle ground between stark, dry rigorous mathematics and loose, possibly inconsistent, descriptive accounts.

Keywords

Agent-based models Behavioural game theory Central limit theorem Complexity Conway’s game of life Economic complexity Emergence Equilibrium Interaction structures Learning and information aggregation in networks Mathematics and economics Prisoner’s dilemma Rule-based behaviour 

JEL Classifications

C6 D5 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Scott E. Page
    • 1
  1. 1.