Agent-based Versus Macroscopic Modeling of Competition and Business Processes in Economics

TL;DR

This paper compares agent-based and macroscopic models of economic competition and business processes, highlighting the use of simulation and web-based tools to facilitate economic modeling and analysis.

Contribution

It introduces simple agent-based and stochastic models of economic competition, demonstrating their microscopic and macroscopic versions, including herding and product diffusion models.

Findings

Agent-based and macroscopic models can effectively represent economic competition.

Web-based simulation tools can enhance accessibility and collaboration.

Microscopic and macroscopic models provide complementary insights.

Abstract

Simulation serves as a third way of doing science, in contrast to both induction and deduction. The web based modeling may considerably facilitate the execution of simulations by other people. We present examples of agent-based and stochastic models of competition and business processes in economics. We start from as simple as possible models, which have microscopic, agent-based, versions and macroscopic treatment in behavior. Microscopic and macroscopic versions of herding model proposed by Kirman and Bass diffusion of new products are considered in this contribution as two basic ideas.