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Agent-Based Modeling and Network Dynamics$
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Akira Namatame and Shu-Heng Chen

Print publication date: 2016

Print ISBN-13: 9780198708285

Published to Oxford Scholarship Online: March 2016

DOI: 10.1093/acprof:oso/9780198708285.001.0001

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Network Awareness in Agent-based Models

Network Awareness in Agent-based Models

(p.15) 2 Network Awareness in Agent-based Models
Agent-Based Modeling and Network Dynamics

Akira Namatame

Shu-Heng Chen

Oxford University Press

Chapter 2 reviews the development of the network-based agent-based models. From the behavioral and decision-making perspective of agents, the network-based agent-based model is accompanied by the neighborhood-based decision rules. The chapter divides the literature into two parts. The one developed before the advent of modern network science normally relies on the one-dimensional or two-dimensional lattices (cellular automata). The one developed with the advent of modern network science relies on the newly proposed network generation algorithms. In a chronological order, the chapter demonstrates the two-generation network-based agent-based models via a number of pioneering works. The purpose of these demonstrations is to show how network topologies can affect the operation of various economic and social systems, including residential segregation, pro-social behavior, oligopolistic competition, market sentiment, sharing of public resources, market mechanism, marketing, and macroeconomic stability. Cellular automata as the theoretical underpinning of undecidability and unpredictability for the dynamics on networks are also introduced.

Keywords:   agent-based model, neighborhood decision rule, network decision rule, cellular automata, small-world network, scale-free network, Schelling’s segregation model, hierarchy of complexity, prisoner’s dilemma game

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