Agent-based and macroscopic modeling of the complex socio-economic systems

TL;DR

This paper explores the relationship between agent-based and macroscopic models in complex socio-economic systems, emphasizing the importance of analytical tractability and collective behavior insights for better policy making.

Contribution

It provides new insights into how local and global interactions, leadership, and predator-prey dynamics influence socio-economic systems, bridging agent-based and macroscopic modeling approaches.

Findings

Insights into the correspondence between individual interactions and collective behavior

Analysis of the effects of global and local interactions on system dynamics

Implications of leadership and predator-prey interactions in socio-economic models

Abstract

The current economic crisis has provoked an active response from the interdisciplinary scientific community. As a result many papers suggesting what can be improved in understanding of the complex socio-economics systems were published. Some of the most prominent papers on the topic include (Bouchaud, 2009; Farmer and Foley, 2009; Farmer et al, 2012; Helbing, 2010; Pietronero, 2008). These papers share the idea that agent-based modeling is essential for the better understanding of the complex socio-economic systems and consequently better policy making. Yet in order for an agent-based model to be useful it should also be analytically tractable, possess a macroscopic treatment (Cristelli et al, 2012). In this work we shed a new light on our research group's contributions towards understanding of the correspondence between the inter-individual interactions and collective behavior. We also provide some new insights into the implications of the global and local interactions, the leadership and the predator-prey interactions in the complex socio-economic systems.