Monday, September 19, 2011

An agent-based model of the housing market

Why agent-based modeling? In the interview below  Doyne Farmer discuses his work with Rob Axtell and John Geanakoplos, who aim to create an agent-based model of the U.S. economy that will people make better understand past, and future, financial crises.

But going back to the question above, why agents? to quote from the SFI website: "Whereas a traditional economic model makes future predictions based on past market behavior and thus fails in unprecedented situations, their agent-based model takes into account the actions of individual decision makers, assigning behavioral rules to each agent in the model"

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