ECONOMIC CYBERNETICS. An Equation-Based Modeling and Agent-Based Modeling Approach

INTRODUCTION/ 9

1. ECONOMIC MODELING/ 11

1.1. Simple vs. Complex Systems/ 12

1.2. What is modeling? / 20

1.3. How can it be done? /21

1.4. Some properties of a model / 24

2. EQUATION BASED MODELING (EBM) / 27

2.1. Difference Equations /28

2.2. Differential Equations/ 43

3. AGENT BASED MODELING (ABM)/ 65

3.1. Why Agent-Based Modeling? / 66

3.2. Agents and Types of Agent-Based Modeling Software /67

3.3. Few Words about NetLogo/ 69

3.4. Randomness vs Determinism/ 72

4. MODELING WITH NETLOGO / 75

4.1. Interface Explained/76

4.2. Code Explained / 84

4.3. Command Center / 143

4.4. Research using NetLogo / 147

4.5. A Decision-making Model in NetLogo /168

4.6. A Grey Systems Therory and ABM Application in NetLogo /177

5. ABM VS. EBM – A CRITICAL ANALYSIS /197

5.1. Some Examples/ 198

5.2. Pros and Cons /213

5.3. Short Summary / 214

6. DISCUSSIONS AND QUIZZES/ 217

REFERENCES / 227

LIST OF FIGURES/ 237

LIST OF TABLES / 241