Computational Model Library

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In three unpublished papers and a collection of diary notes and conference presentations (all available with this model), the concept of “entropic index” is defined for use in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.

06 EiLab V1.36 – Entropic Index Laboratory

Garvin Boyle | Published Sat Jan 31 15:44:18 2015 | Last modified Fri Apr 14 21:29:47 2017

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.

We develop an IBM that predicts how interactions between elephants, poachers, and law enforcement affect poaching levels within a virtual protected area. The model is theoretical at this stage and is not meant to provide a realistic depiction of poaching, but instead to demonstrate how IBMs can expand upon the existing modelling work done in this field, and to provide a framework for future research. The model could be further developed into a useful management support tool to predict the outcomes of various poaching mitigation strategies at real-world locations. The model was implemented in NetLogo version 6.1.0.

We first compared a scenario in which poachers have prescribed, non-adaptive decision-making and move randomly across the landscape, to one in which poachers adaptively respond to their memories of elephant locations and where other poachers have been caught by law enforcement. We then compare a situation in which ranger effort is distributed unevenly across the protected area to one in which rangers patrol by adaptively following elephant matriarchal herds.

Peer reviewed Organizational behavior in the hierarchy model

Smarzhevskiy Ivan | Published Tue Jun 18 10:33:33 2019 | Last modified Wed Jul 31 09:27:47 2019

In a two-level hierarchical structure (consisting of the positions of managers and operators), persons holding these positions have a certain performance and the value of their own (personal perception in this, simplified, version of the model) perception of each other. The value of the perception of each other by agents is defined as a random variable that has a normal distribution (distribution parameters are set by the control elements of the interface).
In the world of the model, which is the space of perceptions, agents implement two strategies: rapprochement with agents that perceive positively and distance from agents that perceive negatively (both can be implemented, one of these strategies, or neither, the other strategy, which makes the agent stationary). Strategies are implemented in relation to those agents that are in the radius of perception (PerRadius).
The manager (Head) forms a team of agents. The performance of the group (the sum of the individual productivities of subordinates, weighted by the distance from the leader) varies depending on the position of the agents in space and the values of their individual productivities. Individual productivities, in the current version of the model, are set as a random variable distributed evenly on a numerical segment from 0 to 100. The manager forms the team 1) from agents that are in (organizational) radius (Op_Radius), 2) among agents that the manager perceives positively and / or negatively (both can be implemented, one of the specified rules, or neither, which means the refusal of the command formation).
Agents can (with a certain probability, given by the variable PrbltyOfDecisn%), in case of a negative perception of the manager, leave his group permanently.
It is possible in the model to change on the fly radii values, update the perception value across the entire population and the perception of an individual agent by its neighbors within the perception radius, and the probability values for a subordinate to make a decision about leaving the group.
You can also change the set of strategies for moving agents and strategies for recruiting a team manager. It is possible to add a randomness factor to the movement of agents (Stoch_Motion_Speed, the default is set to 0, that is, there are no random movements).

Bicycle encounter model

Gudrun Wallentin | Published Sat Oct 29 20:45:47 2016 | Last modified Fri Mar 29 19:38:22 2019

This Bicycle encounter model builds on the Salzburg Bicycle model (Wallentin & Loidl, 2015). It simulates cyclist flows and encounters, which are locations of potential accidents between cyclists.

We study three obstacles of the expansion of contract rice farming in the Mekong Delta (MKD) region. The failure of buyers in building trust-based relationship with small-holder farmers, unattractive offered prices from the contract farming scheme, and limited rice processing capacity have constrained contractors from participating in the large-scale paddy field program. We present an agent-based model to examine the viability of contract farming in the region from the contractor perspective.

The model focuses on financial incentives and trust, which affect the decision of relevant parties on whether to participate and honor a contract. The model is also designed in the context of the MKD’s rice supply chain with two contractors engaging in the contract rice farming scheme alongside an open market, in which both parties can renege on the agreement. We then evaluate the contractors’ performances with different combinations of scenarios related to the three obstacles.

Our results firstly show that a fully-equipped contractor who opportunistically exploits a relatively small proportion (less than 10%) of the contracted farmers in most instances can outperform spot market-based contractors in terms of average profit achieved for each crop. Secondly, a committed contractor who offers lower purchasing prices than the most typical rate can obtain better earnings per ton of rice as well as higher profit per crop. However, those contractors in both cases could not enlarge their contract farming scheme, since either farmers’ trust toward them decreases gradually or their offers are unable to compete with the benefits from a competitor or the spot market. Thirdly, the results are also in agreement with the existing literature that the contract farming scheme is not a cost-effective method for buyers with limited rice processing capacity, which is a common situation among the contractors in the MKD region.

The largely dominant meritocratic paradigm of highly competitive Western cultures is rooted on the belief that success is due mainly, if not exclusively, to personal qualities such as talent, intelligence, skills, smartness, efforts, willfulness, hard work or risk taking. Sometimes, we are willing to admit that a certain degree of luck could also play a role in achieving significant material success. But, as a matter of fact, it is rather common to underestimate the importance of external forces in individual successful stories. It is very well known that intelligence (or, more in general, talent and personal qualities) exhibits a Gaussian distribution among the population, whereas the distribution of wealth - often considered a proxy of success - follows typically a power law (Pareto law), with a large majority of poor people and a very small number of billionaires. Such a discrepancy between a Normal distribution of inputs, with a typical scale (the average talent or intelligence), and the scale invariant distribution of outputs, suggests that some hidden ingredient is at work behind the scenes. In a recent paper, with the help of this very simple agent-based model realized with NetLogo, we suggest that such an ingredient is just randomness. In particular, we show that, if it is true that some degree of talent is necessary to be successful in life, almost never the most talented people reach the highest peaks of success, being overtaken by mediocre but sensibly luckier individuals. As to our knowledge, this counterintuitive result - although implicitly suggested between the lines in a vast literature - is quantified here for the first time. It sheds new light on the effectiveness of assessing merit on the basis of the reached level of success and underlines the risks of distributing excessive honors or resources to people who, at the end of the day, could have been simply luckier than others. With the help of this model, several policy hypotheses are also addressed and compared to show the most efficient strategies for public funding of research in order to improve meritocracy, diversity and innovation.

Model explains both the final state and the dynamics of the development process of the wine sector in the Małopolska region in Poland. Model admits heterogeneous agents (regular farms,large and small vineyards).

CRESY-II

Cara Kahl | Published Fri Jul 8 16:08:03 2011 | Last modified Mon Aug 4 07:31:27 2014

CREativity from a SYstems perspective, Model II.

It is very difficult to model a sustainable intergenerational biophysical/financial economy. ModEco NLG is one of a series of models exploring the dynamics of sustainable economics – PSoup, ModEco, EiLab, OamLab, MppLab, TpLab, CmLab.

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