Patagonia PSMED is an agent-based model designed to study a simple case of Evolution of Ethnic Differentiation. It replicates how can hunter-gatherer societies evolve and built cultural identities as a consequence of the way they interacted.

The “Descriptive Norm and Fraud Dynamics” model demonstrates how fraudulent behavior can either proliferate or be contained within non-hierarchical organizations, such as peer networks, through social influence taking the form of a descriptive norm. This model expands on the fraud triangle theory, which posits that an individual must concurrently possess a financial motive, perceive an opportunity, and hold a pro-fraud attitude to engage in fraudulent activities (red agent). In the absence of any of these elements, the individual will act honestly (green agent).

The model explores variations in a descriptive norm mechanism, ranging from local distorted knowledge to global perfect knowledge. In the case of local distorted knowledge, agents primarily rely on information from their first-degree colleagues. This knowledge is often distorted because agents are slow to update their empirical expectations, which are only partially revised after one-to-one interactions. On the other end of the spectrum, local perfect knowledge is achieved by incorporating a secondary source of information into the agents’ decision-making process. Here, accurate information provided by an observer is used to update empirical expectations.

The model shows that the same variation of the descriptive norm mechanism could lead to varying aggregate fraud levels across different fraud categories. Two empirically measured norm sensitivity distributions associated with different fraud categories can be selected into the model to see the different aggregate outcomes.

This model aims to explore how gambling-like behavior can emerge in loot box spending within gaming communities. A loot box is a purchasable mystery box that randomly awards the player a series of in-game items. Since the contents of the box are largely up to chance, many players can fall into a compulsion loop of purchasing, as the fear of missing out and belief in the gambler’s fallacy allow one to rationalize repeated purchases, especially when one compares their own luck to others. To simulate this behavior, this model generates players in different network structures to observe how factors such as network connectivity, a player’s internal decision making strategy, or even common manipulations games use these days may influence a player’s transactions.