Computational Model Library

Motivated by the emergence of new Peer-to-Peer insurance organizations that rethink how insurance is organized, we propose a theoretical model of decision-making in risk-sharing arrangements with risk heterogeneity and incomplete information about the risk distribution as core features. For these new, informal organisations, the available institutional solutions to heterogeneity (e.g., mandatory participation or price differentiation) are either impossible or undesirable. Hence, we need to understand the scope conditions under which individuals are motivated to participate in a bottom-up risk-sharing setting. The model puts forward participation as a utility maximizing alternative for agents with higher risk levels, who are more risk averse, are driven more by solidarity motives, and less susceptible to cost fluctuations. This basic micro-level model is used to simulate decision-making for agent populations in a dynamic, interdependent setting. Simulation results show that successful risk-sharing arrangements may work if participants are driven by motivations of solidarity or risk aversion, but this is less likely in populations more heterogeneous in risk, as the individual motivations can less often make up for the larger cost deficiencies. At the same time, more heterogeneous groups deal better with uncertainty and temporary cost fluctuations than more homogeneous populations do. In the latter, cascades following temporary peaks in support requests more often result in complete failure, while under full information about the risk distribution this would not have happened.

This model, realized on the NetLogo platform, compares utility levels at home and abroad to simulate agents’ migration and their eventual return. Our model is based on two fundamental individual features, i.e. risk aversion and initial expectation, which characterize the dynamics of different agents according to the evolution of their social contacts.

A simple Multi-Agent System of the Tragedy Of the Commons (MASTOC-s)

Julia Schindler | Published Fri Jun 29 13:39:10 2012 | Last modified Sat Apr 27 20:18:19 2013

This is a simple model replicating Hardin’s Tragedy of the Commons using reactive agents that have psychological behavioral and social preferences.

MASTOC - A Multi-Agent System of the Tragedy Of The Commons

Julia Schindler | Published Tue Nov 30 13:39:32 2010 | Last modified Sat Apr 27 20:18:40 2013

MASTOC is a replication of the Tragedy of the Commons by G. Hardin, programmed in NetLogo 4.0.4, based on behavioral game theory and Nash solution.

A model of groundwater usage by farmers in the Upper Guadiana, Spain

Georg Holtz | Published Thu Jun 30 14:25:25 2011 | Last modified Sat Apr 27 20:18:17 2013

An agent-based model to investigate the history of irrigated agriculture in the Upper Guadiana Basin, Spain, in order to learn about the influence of farmers’ characteristics (inter alia profit orientation, risk aversion, skills, available labour force and farm size) on land-use change and associated groundwater over-use in this region.

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