This model inspects the performance of firms as the product attribute space changes, which evolves as a consequence of firms’ actions. Firms may create new product variants by dragging demand from other existing variants. Firms decide whether to open new product variants, to invade existing ones, or to keep their variant portfolio. At each variant there is a Cournot competition each round. Competition is nested since many firms compete at many variants simultaneously, affecting firm composition at each location (variant).

After the Cournot outcomes, at each round firms decide whether to (i) keep their existing product variant niche, (ii) invade an existing variant, (iii) create a new variant, or (iv) abandon a variant. Firms’ profits across their niche take into consideration the niche-width cost and the cost of opening a new variant.

This model is an extension of the Artificial Long House Valley (ALHV) model developed by the authors (Swedlund et al. 2016; Warren and Sattenspiel 2020). The ALHV model simulates the population dynamics of individuals within the Long House Valley of Arizona from AD 800 to 1350. Individuals are aggregated into households that participate in annual agricultural and demographic cycles. The present version of the model incorporates features of the ALHV model including realistic age-specific fertility and mortality and, in addition, it adds the Black Mesa environment and population, as well as additional methods to allow migration between the two regions.

As is the case for previous versions of the ALHV model as well as the Artificial Anasazi (AA) model from which the ALHV model was derived (Axtell et al. 2002; Janssen 2009), this version makes use of detailed archaeological and paleoenvironmental data from the Long House Valley and the adjacent areas in Arizona. It also uses the same methods as the original AA model to estimate annual maize productivity of various agricultural zones within the Long House Valley. A new environment and associated methods have been developed for Black Mesa. Productivity estimates from both regions are used to determine suitable locations for households and farms during each year of the simulation.

This model extends the original Artifical Anasazi (AA) model to include individual agents, who vary in age and sex, and are aggregated into households. This allows more realistic simulations of population dynamics within the Long House Valley of Arizona from AD 800 to 1350 than are possible in the original model. The parts of this model that are directly derived from the AA model are based on Janssen’s 1999 Netlogo implementation of the model; the code for all extensions and adaptations in the model described here (the Artificial Long House Valley (ALHV) model) have been written by the authors. The AA model included only ideal and homogeneous “individuals” who do not participate in the population processes (e.g., birth and death)–these processes were assumed to act on entire households only. The ALHV model incorporates actual individual agents and all demographic processes affect these individuals. Individuals are aggregated into households that participate in annual agricultural and demographic cycles. Thus, the ALHV model is a combination of individual processes (birth and death) and household-level processes (e.g., finding suitable agriculture plots).

As is the case for the AA model, the ALHV model makes use of detailed archaeological and paleoenvironmental data from the Long House Valley and the adjacent areas in Arizona. It also uses the same methods as the original model (from Janssen’s Netlogo implementation) to estimate annual maize productivity of various agricultural zones within the valley. These estimates are used to determine suitable locations for households and farms during each year of the simulation.

Demand planning requires processing of distributed information. In this process, individuals, their properties and interactions play a crucial role. This model is a computational testbed to investigate these aspects with respect to forecast accuracy.

I added a discounting rate to the equation for expected values of defective / collaborative strategies.
The discounting rate was set to 0.956, the annual average from 1980 to 2015, using the Consumer Price Index (CPI) of Statistics Korea.

The current rate of production and consumption of meat poses a problem both to peoples’ health and to the environment. This work aims to develop a simulation of peoples’ meat consumption behaviour in Britain using agent-based modelling. The agents represent individual consumers. The key variables that characterise agents include sex, age, monthly income, perception of the living cost, and concerns about the impact of meat on the environment, health, and animal welfare. A process of peer influence is modelled with respect to the agents’ concerns. Influence spreads across two eating networks (i.e. co-workers and household members) depending on the time of day, day of the week, and agents’ employment status. Data from a representative sample of British consumers is used to empirically ground the model. Different experiments are run simulating interventions of application of social marketing campaigns and a rise in price of meat. The main outcome is the average weekly consumption of meat per consumer. A secondary outcome is the likelihood of eating meat.

In 1985 Dr Michael Palmiter, a high school teacher, first built a very innovative agent-based model called “Simulated Evolution” which he used for teaching the dynamics of evolution. In his model, students can see the visual effects of evolution as it proceeds right in front of their eyes. Using his schema, small linear changes in the agent’s genotype have an exponential effect on the agent’s phenotype. Natural selection therefore happens quickly and effectively. I have used his approach to managing the evolution of competing agents in a variety of models that I have used to study the fundamental dynamics of sustainable economic systems. For example, here is a brief list of some of my models that use “Palmiter Genes”:
- ModEco - Palmiter genes are used to encode negotiation strategies for setting prices;
- PSoup - Palmiter genes are used to control both motion and metabolic evolution;
- TpLab - Palmiter genes are used to study the evolution of belief systems;
- EffLab - Palmiter genes are used to study Jevon’s Paradox, EROI and other things.

…

EiLab - Model I - is a capital exchange model. That is a type of economic model used to study the dynamics of modern money which, strangely, is very similar to the dynamics of energetic systems. It is a variation on the BDY models first described in the paper by Dragulescu and Yakovenko, published in 2000, entitled “Statistical Mechanics of Money”. This model demonstrates the ability of capital exchange models to produce a distribution of wealth that does not have a preponderance of poor agents and a small number of exceedingly wealthy agents.

This is a re-implementation of a model first built in the C++ application called Entropic Index Laboratory, or EiLab. The first eight models in that application were labeled A through H, and are the BDY models. The BDY models all have a single constraint - a limit on how poor agents can be. That is to say that the wealth distribution is bounded on the left. This ninth model is a variation on the BDY models that has an added constraint that limits how wealthy an agent can be? It is bounded on both the left and right.

EiLab demonstrates the inevitable role of entropy in such capital exchange models, and can be used to examine the connections between changing entropy and changes in wealth distributions at a very minute level.

…

There is a new type of economic model called a capital exchange model, in which the biophysical economy is abstracted away, and the interaction of units of money is studied. Benatti, Drăgulescu and Yakovenko described at least eight capital exchange models – now referred to collectively as the BDY models – which are replicated as models A through H in EiLab. In recent writings, Yakovenko goes on to show that the entropy of these monetarily isolated systems rises to a maximal possible value as the model approaches steady state, and remains there, in analogy of the 2nd law of thermodynamics. EiLab demonstrates this behaviour. However, it must be noted that we are NOT talking about thermodynamic entropy. Heat is not being modeled – only simple exchanges of cash. But the same statistical formulae apply.

In three unpublished papers and a collection of diary notes and conference presentations (all available with this model), the concept of “entropic index” is defined for use in agent-based models (ABMs), with a particular interest in sustainable economics. Models I and J of EiLab are variations of the BDY model especially designed to study the Maximum Entropy Principle (MEP – model I) and the Maximum Entropy Production Principle (MEPP – model J) in ABMs. Both the MEPP and H.T. Odum’s Maximum Power Principle (MPP) have been proposed as organizing principles for complex adaptive systems. The MEPP and the MPP are two sides of the same coin, and an understanding of their implications is key, I believe, to understanding economic sustainability. Both of these proposed (and not widely accepted) principles describe the role of entropy in non-isolated systems in which complexity is generated and flourishes, such as ecosystems, and economies.

EiLab is one of several models exploring the dynamics of sustainable economics – PSoup, ModEco, EiLab, OamLab, MppLab, TpLab, and CmLab.

EiLab explores the role of entropy in simple economic models. EiLab is one of several models exploring the dynamics of sustainable economics – PSoup, ModEco, EiLab, OamLab, MppLab, TpLab, and CmLab.