With this model, we investigate resource extraction and labor conditions in the Global South as well as implications for climate change originating from industry emissions in the North. The model serves as a testbed for simulation experiments with evolutionary political economic policies addressing these issues. In the model, heterogeneous agents interact in a self-organizing and endogenously developing economy. The economy contains two distinct regions – an abstract Global South and Global North. There are three interlinked sectors, the consumption good–, capital good–, and resource production sector. Each region contains an independent consumption good sector, with domestic demand for final goods. They produce a fictitious consumption good basket, and sell it to the households in the respective region. The other sectors are only present in one region. The capital good sector is only found in the Global North, meaning capital goods (i.e. machines) are exclusively produced there, but are traded to the foreign as well as the domestic market as an intermediary. For the production of machines, the capital good firms need labor, machines themselves and resources. The resource production sector, on the other hand, is only located in the Global South. Mines extract resources and export them to the capital firms in the North. For the extraction of resources, the mines need labor and machines. In all three sectors, prices, wages, number of workers and physical capital of the firms develop independently throughout the simulation. To test policies, an international institution is introduced sanctioning the polluting extractivist sector in the Global South as well as the emitting industrial capital good producers in the North with the aim of subsidizing innovation reducing environmental and social impacts.

The SimPioN model aims to abstractly reproduce and experiment with the conditions under which a path-dependent process may lead to a (structural) network lock-in in interorganisational networks.

Path dependence theory is constructed around a process argumentation regarding three main elements: a situation of (at least) initially non-ergodic (unpredictable with regard to outcome) starting conditions in a social setting; these become reinforced by the workings of (at least) one positive feedback mechanism that increasingly reduces the scope of conceivable alternative choices; and that process finally results in a situation of lock-in, where any alternatives outside the already adopted options become essentially impossible or too costly to pursue despite (ostensibly) better options theoretically being available.

The purpose of SimPioN is to advance our understanding of lock-ins arising in interorganisational networks based on the network dynamics involving the mechanism of social capital. This mechanism and the lock-ins it may drive have been shown above to produce problematic consequences for firms in terms of a loss of organisational autonomy and strategic flexibility, especially in high-tech knowledge-intensive industries that rely heavily on network organising.

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Agent based approach to the class of the Integrated Assessment Models. An agent-based model (ABM) that focuses on the energy sector and climate relevant facts in a detailed way while being complemented with consumer goods, labour and capital markets to a minimal necessary extent.

We study the impact of endogenous creation and destruction of social ties in an artificial society on aggregate outcomes such as generalized trust, willingness to cooperate, social utility and economic performance. To this end we put forward a computational multi-agent model where agents of overlapping generations interact in a dynamically evolving social network. In the model, four distinct dimensions of individuals’ social capital: degree, centrality, heterophilous and homophilous interactions, determine their generalized trust and willingness to cooperate, altogether helping them achieve certain levels of social utility (i.e., utility from social contacts) and economic performance. We find that the stationary state of the simulated social network exhibits realistic small-world topology. We also observe that societies whose social networks are relatively frequently reconfigured, display relatively higher generalized trust, willingness to cooperate, and economic performance – at the cost of lower social utility. Similar outcomes are found for societies where social tie dissolution is relatively weakly linked to family closeness.

Overview

Purpose

Modeling an economy with stable macro signals, that works as a benchmark for studying the effects of the agent activities, e.g. extortion, at the service of the elaboration of public policies..
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In 1985 Dr Michael Palmiter, a high school teacher, first built a very innovative agent-based model called “Simulated Evolution” which he used for teaching the dynamics of evolution. In his model, students can see the visual effects of evolution as it proceeds right in front of their eyes. Using his schema, small linear changes in the agent’s genotype have an exponential effect on the agent’s phenotype. Natural selection therefore happens quickly and effectively. I have used his approach to managing the evolution of competing agents in a variety of models that I have used to study the fundamental dynamics of sustainable economic systems. For example, here is a brief list of some of my models that use “Palmiter Genes”:
- ModEco - Palmiter genes are used to encode negotiation strategies for setting prices;
- PSoup - Palmiter genes are used to control both motion and metabolic evolution;
- TpLab - Palmiter genes are used to study the evolution of belief systems;
- EffLab - Palmiter genes are used to study Jevon’s Paradox, EROI and other things.

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EiLab - Model I - is a capital exchange model. That is a type of economic model used to study the dynamics of modern money which, strangely, is very similar to the dynamics of energetic systems. It is a variation on the BDY models first described in the paper by Dragulescu and Yakovenko, published in 2000, entitled “Statistical Mechanics of Money”. This model demonstrates the ability of capital exchange models to produce a distribution of wealth that does not have a preponderance of poor agents and a small number of exceedingly wealthy agents.

This is a re-implementation of a model first built in the C++ application called Entropic Index Laboratory, or EiLab. The first eight models in that application were labeled A through H, and are the BDY models. The BDY models all have a single constraint - a limit on how poor agents can be. That is to say that the wealth distribution is bounded on the left. This ninth model is a variation on the BDY models that has an added constraint that limits how wealthy an agent can be? It is bounded on both the left and right.

EiLab demonstrates the inevitable role of entropy in such capital exchange models, and can be used to examine the connections between changing entropy and changes in wealth distributions at a very minute level.

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The Emergent Firm (EF) model is based on the premise that firms arise out of individuals choosing to work together to advantage themselves of the benefits of returns-to-scale and coordination. The Emergent Firm (EF) model is a new implementation and extension of Rob Axtell’s Endogenous Dynamics of Multi-Agent Firms model. Like the Axtell model, the EF model describes how economies, composed of firms, form and evolve out of the utility maximizing activity on the part of individual agents. The EF model includes a cash-in-advance constraint on agents changing employment, as well as a universal credit-creating lender to explore how costs and access to capital affect the emergent economy and its macroeconomic characteristics such as firm size distributions, wealth, debt, wages and productivity.

The model combines agent-based modelling and microeconomic approach to simulate the decision behaviour of land developers and how this impacts on the spatio-temporal processes of urban expansion.

Righi S., Takacs K., Social Closure and the Evolution of Cooperation via Indirect Reciprocity, Resubmitted after Revisions to Scientific Reports