Editing Agent-based model (section)

===In economics and social sciences===
{{main|Agent-based computational economics|Agent-based social simulation}}
{{see also|Artificial financial market}}
Prior to, and in the wake of the [[Financial crisis of 2007–2008|2008 financial crisis]], interest has grown in ABMs as possible tools for economic analysis.<ref>{{cite book |first=Scott E. |last=Page |year=2008 |title=Agent-Based Models |work=[[The New Palgrave Dictionary of Economics]] |edition=2 |url=http://www.dictionaryofeconomics.com/article?id=pde2008_A000218&edition=current&q=agent-based%20computational%20modeling&topicid=&result_number=1 |access-date=October 3, 2011 |archive-date=February 10, 2018 |archive-url=https://web.archive.org/web/20180210023520/https://www.springernature.com/gp/ |url-status=live }}</ref><ref>{{cite book |editor1-first=Leigh |editor1-last=Testfatsion |editor1-link=Leigh Tesfatsion |editor2-first=Kenneth |editor2-last=Judd |editor2-link=Kenneth Judd |date=May 2006 |title=Handbook of Computational Economics |volume=2 |publisher=[[Elsevier]] |pages=904 |url=http://www.elsevier.com/wps/find/bookdescription.cws_home/660847/description#description |isbn=978-0-444-51253-6 |access-date=January 29, 2012 |archive-url=https://web.archive.org/web/20120306100156/http://www.elsevier.com/wps/find/bookdescription.cws_home/660847/description#description |archive-date=March 6, 2012 |url-status=dead |df=mdy-all }} ([https://www.sciencedirect.com/science/journal/15740021/2 Chapter preview)]</ref> ABMs do not assume the economy can [[Economic equilibrium|achieve equilibrium]] and "[[representative agent]]s" are replaced by agents with [[Heterogeneity in economics#Economic models with heterogeneous agents|diverse, dynamic, and interdependent behavior]] including [[herding]]. ABMs take a [[Microfoundations|"bottom-up" approach]] and can generate extremely complex and volatile simulated economies. ABMs can represent unstable systems with crashes and booms that develop out of non-[[linear]] (disproportionate) responses to proportionally small changes.<ref name="agents">{{cite news |url=http://www.economist.com/node/16636121 |title=Agents of change |date=July 22, 2010 |newspaper=The Economist |access-date=February 16, 2011 |archive-date=January 23, 2011 |archive-url=https://web.archive.org/web/20110123110948/http://www.economist.com/node/16636121 |url-status=live }}</ref> A July 2010 article in ''[[The Economist]]'' looked at ABMs as alternatives to [[Dynamic stochastic general equilibrium|DSGE]] models.<ref name="agents"/> The journal ''[[Nature (journal)|Nature]]'' also encouraged agent-based modeling with an editorial that suggested ABMs can do a better job of representing financial markets and other economic complexities than standard models<ref>{{cite journal |title=A model approach |journal=[[Nature (journal)|Nature]] |volume=460 |issue=7256 |page=667 |date=August 6, 2009 |doi=10.1038/460667a |pmid=19661863 |bibcode=2009Natur.460Q.667.|doi-access=free }}</ref> along with an essay by [[J. Doyne Farmer]] and Duncan Foley that argued ABMs could fulfill both the desires of Keynes to represent a complex economy and of Robert Lucas to construct models based on microfoundations.{{sfn|Farmer|Foley|2009|p=685}} Farmer and Foley pointed to progress that has been made using ABMs to model parts of an economy, but argued for the creation of a very large model that incorporates low level models.{{sfn|Farmer|Foley|2009|p=686}} By modeling a complex system of [[financial analyst|analysts]] based on three distinct behavioral profiles – imitating, anti-imitating, and indifferent – [[financial market]]s were simulated to high accuracy. Results showed a correlation between network morphology and the stock market index.<ref>Stefan, F., & Atman, A. (2015). Is there any connection between the network morphology and the fluctuations of the stock market index? Physica A: Statistical Mechanics and Its Applications, (419), 630-641.</ref> However, the ABM approach has been criticized for its lack of robustness between models, where similar models can yield very different results.<ref>{{cite journal |last1=Dawid |first1=Herbert |last2=Gatti |first2=Delli |date=January 2018 |title=Agent-based macroeconomics |journal=Handbook of Computational Economics |volume=4 |pages=63–156|doi=10.1016/bs.hescom.2018.02.006 }}</ref><ref>{{cite journal |last1=Rand |first1=William |last2=Rust |first2=Roland T. |date=July 2011 |title=Agent-based modeling in marketing: Guidelines for rigor |journal=International Journal of Research in Marketing |volume=28 |issue=3 |pages=181–193 |doi=10.1016/j.ijresmar.2011.04.002 }}</ref>

ABMs have been deployed in architecture and urban planning to evaluate design and to simulate pedestrian flow in the urban environment<ref>{{cite journal |first1=G.D.P.A |last2=Wullschleger |first2=Tobias |last3=Müller |first3=Hanspeter |last4=Schmitt |first4=Gerhard |last1=Aschwanden |year=2009 |title=Evaluation of 3D city models using automatic placed urban agents |journal=Automation in Construction |volume=22 |pages=81–89 |doi=10.1016/j.autcon.2011.07.001}}</ref> and the examination of public policy applications to land-use.<ref>{{cite journal |first1=Daniel G. |last1=Brown |last2=Page |first2=Scott E. |last3=Zellner |first3=Moira |last4=Rand |first4=William |year=2005 |title=Path dependence and the validation of agent-based spatial models of land use |journal=International Journal of Geographical Information Science |volume=19 |issue=2 |pages=153–174 |doi=10.1080/13658810410001713399|doi-access=free |bibcode=2005IJGIS..19..153B }}</ref> There is also a growing field of socio-economic analysis of infrastructure investment impact using ABM's ability to discern systemic impacts upon a socio-economic network.<ref>{{cite report |first1=Paul |last2=Stiff |first2=David |last1=Smetanin |year=2015 |title=Investing in Ontario's Public Infrastructure: A Prosperity at Risk Perspective, with an analysis of the Greater Toronto and Hamilton Area |publisher=The Canadian Centre for Economic Analysis |url=http://www.cancea.ca/sites/economic-analysis.ca/files/reports/CANCEA%20Report%20-%20Investing%20in%20Ontario%27s%20Infrastructure%20FINAL%20Oct%202015%20Web.pdf |access-date=November 17, 2016 |archive-date=November 18, 2016 |archive-url=https://web.archive.org/web/20161118042407/http://www.cancea.ca/sites/economic-analysis.ca/files/reports/CANCEA%20Report%20-%20Investing%20in%20Ontario%27s%20Infrastructure%20FINAL%20Oct%202015%20Web.pdf |url-status=live }}</ref> Heterogeneity and dynamics can be easily built in ABM models to address wealth inequality and social mobility.<ref>{{Cite journal |last1=Yang |first1=Xiaoliang |last2=Zhou |first2=Peng |date=April 2022 |title=Wealth inequality and social mobility: A simulation-based modelling approach |journal=Journal of Economic Behavior & Organization |language=en |volume=196 |pages=307–329 |doi=10.1016/j.jebo.2022.02.012 |s2cid=247143315 |doi-access=free |hdl=10419/261231 |hdl-access=free }}</ref>

ABMs have also been proposed as applied educational tools for diplomats in the field of [[international relations]]<ref>{{Cite journal |last1=Butcher |first1=Charity |last2=Njonguo |first2=Edwin |date=2021-12-22 |title=Simulating Diplomacy: Learning Aid or Business as Usual? |url=|journal=Journal of Political Science Education |language=en |volume=17 |issue=sup1 |pages=185–203 |doi=10.1080/15512169.2020.1803080 |issn=1551-2169}}</ref> and for domestic and international policymakers to enhance their evaluation of [[public policy]].<ref>{{Cite journal |last1=Gilbert |first1=Nigel |last2=Ahrweiler |first2=Petra |last3=Barbrook-Johnson |first3=Pete |last4=Narasimhan |first4=Kavin Preethi |last5=Wilkinson |first5=Helen |date=2018 |title=Computational Modelling of Public Policy: Reflections on Practice |url=http://jasss.soc.surrey.ac.uk/21/1/14.html |journal=Journal of Artificial Societies and Social Simulation |language=en |volume=21 |issue=1 |doi=10.18564/jasss.3669 |issn=1460-7425|hdl=10044/1/102075 |hdl-access=free }}</ref>