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Computational Intelligence: A Compendium pp 517–594Cite as

Computational Intelligence in Agent-Based Computational Economics

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Part of the book series: Studies in Computational Intelligence ((SCI,volume 115))

Agent-based computational economics is the study of economics using agent-based modeling and simulation, which, according to [21], is the third way, in addition to deduction and induction, to undertake social sciences. An agentbased model is a model comprising autonomous agents placed in an interactive environment (society) or social network. Simulating this model via computers is probably the most practical way to visualize economic dynamics.

In order to build autonomous agents, agent-based computational economists need to employ existing algorithms or develop new algorithms which can enable agents to behave with a degree of autonomy. Sections 1.2, 2 and 3 of the chapter will give a thorough review of the algorithmic foundations of ACE. We also introduce here the field known as computational intelligence(CI) and its relevance to economics. Section 4 then reviews the use of computational intelligence in agent-based economic and financial models. Section 5 gives some general remarks on these applications, as well as pointing to future directions. This is followed by concluding remarks in Sect. 6.

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Authors and Affiliations

  1. AI-ECON Research Center, Department of Economics, National Chengchi University, Taipei, Taiwan, 116

    Shu-Heng Chen

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  1. School of Computer Science and Software Engineering Faculty of Informatics, University of Wollongong, Northfields Ave, Wollongong, NSW, 2522, Australia

    John Fulcher

  2. Knowledge-Based Engineering Founding Director of the KES Centre, University of South Australia, SCT-Building Mawson Lakes Campus, Adelaide, South Australia SA, 5095, Australia

    L. C. Jain

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Chen, SH. (2008). Computational Intelligence in Agent-Based Computational Economics. In: Fulcher, J., Jain, L.C. (eds) Computational Intelligence: A Compendium. Studies in Computational Intelligence, vol 115. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-78293-3_13

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