Home // International Journal On Advances in Intelligent Systems, volume 5, numbers 1 and 2, 2012 // View article

Agent-based Versus Macroscopic Modeling of Competition and Business Processes in Economics and Finance

Authors:
Aleksejus Kononovicius
Vygintas Gontis
Valentas Daniunas

Keywords: agent-based modeling; stochastic modeling; business models; financial market models.

Abstract:
We present examples of agent-based and stochastic models of competition and business processes in economics and finance. We start from as simple as possible models, which have microscopic, agent-based, versions and macroscopic treatment in behavior. Microscopic and macroscopic versions of herding model proposed by Kirman and Bass new product diffusion are considered in this contribution as two basic ideas. Further we demonstrate that general herding behavior can be considered as a background of nonlinear stochastic model of financial fluctuations.

Pages: 111 to 126

Copyright: Copyright (c) to authors, 2012. Used with permission.

Publication date: June 30, 2012

Published in: journal

ISSN: 1942-2679