Exploring markets with agent-based computer simulations

Do we always need to interview human beings in the flesh, or can we get reliable information by observing thousands of 'I-individuals' who are pre-programmed to follow the same utility function as their human counterparts? Where is the frontier? Agent-based modeling is a form of computational simulation where artificial agents are given a set of rules and then interact freely between each-others.

Exploring markets with agent-based computer simulations

Roger A. ParkerGlobal Value Analysis, Boeing Commercial Airplanes, United States and Virtual Minds, SA, Switzerland, Market Modeling

David Perroudmind-set, Switzerland

PREFACE

Following a presentation of agent-based modeling in marketing in the 2005 ESOMAR Congress (Bakken and Parker (2007)), this paper presents and discusses an actual application of agent-based modeling techniques to a real market. The discussion reviews the concepts of agent-based modeling and its application to marketing science, and offers operational details of a simulation model of the world's passenger airline network, in which the behavior of all 266 million air...

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