Using Agent-Based Models to Manage the Complex
|Robertson, D. A. (2005) Ã¢â‚¬ËœUsing Agent-Based Models to Manage the ComplexÃ¢â‚¬â„¢, In: K. Richardson (Ed.) Managing the Complex: Philosophy, Theory, and Application, Greenwich CT: Information Age Publishing, pp. 419-432|
This chapter introduces agent-based models and their application to management.
The use of agent-based models is especially beneficial in situations where there are a number of inter-connected agents forming a complex system, be they firms, employees, customers, or other entities. We discuss the concept of agent-based modeling, building on an example model of interacting firms and customers.
We discuss how this model was developed using the agent-based modeling toolkit RePast. We describe not only the advantages but also the disadvantages of agent-based models over more traditional techniques. We introduce several other agent-based models from the more general social science literature, discuss the level of complexity that should be introduced into an agent-based model, and discuss how such a technique may make an impact on the manager or organization whose strategy is to endeavor to manage the complex.