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Article
Modeling Economic Systems as Locally-Constructive Sequential Games
Economics Working Papers
  • Leigh Tesfatsion, Iowa State University
Publication Date
7-11-2017
Number
17022
Abstract

Real-world economies are open-ended dynamic systems consisting of heterogeneous interacting participants. Human participants are decision-makers who strategically take into account the past actions and potential future actions of other participants. All participants are forced to be locally constructive, meaning their actions at any given time must be based on their local states; and participant actions at any given time affect future local states. Taken together, these properties imply real-world economies are locally-constructive sequential games. This study discusses a modeling approach, agent-based computational economics (ACE), that permits researchers to study economic systems from this point of view. ACE modeling principles and objectives are first concisely presented. The remainder of the study then highlights challenging issues and edgier explorations that ACE researchers are currently pursuing.

Version History

Original Release Date: February 18, 2017

Revisions: March 8, 2017; March 28, 2017; April 30, 2017

Latest Revision: July 11, 2017

File Format
application/pdf
Length
35 pages
Citation Information
Leigh Tesfatsion. "Modeling Economic Systems as Locally-Constructive Sequential Games" (2017)
Available at: http://works.bepress.com/leigh-tesfatsion/95/