Posts Tagged ‘rational choice theory Von Neumann & Morgenstern 1944’
Axelrod (1984) made a major contribution to Game Theory in his book “Evolution of Cooperation” but thirteen years later he, dissatisfied with game theory, moves onto agent based modelling to rework his view of cooperation in his book in 1997 “The complexity of Cooperation: Agent-based Models of Competition and Collaboration”. In a similar move, the Santa Fe Institute in the US was established in 1984 to grapple with complex social issues and used agent based modelling amongst other techniques to “collaborate across disciplines, merging ideas and principles of many fields — from physics, mathematics, and biology to the social sciences and the humanities — in pursuit of creative insights that improve our world”. Additionally, the EU acknowledges the failure of traditional economics so adopts agent based modelling.
Agent based modelling captures the interaction between agents to simulate emergence whether at the physical or social level. NetLogo provides an extensive library of simulations of both physical and social emergence that shows the diversity of application of agent based modelling. These sample simulations can be readily tailored to meet the needs of social scientists. The software is free and there is a thriving enthusiastic community support group.
Why is there a move by a prominent game theorist, the Santa Fe Institute and the EU to agent based modelling? The article Game Theory as Dogma by Professor Kay (2005) discusses ample reasons to search for alternative techniques to model competition and collaboration and emergence in general. For instance,
The trouble with game theory is that it can explain everything. If a bank president was standing in the street and lighting his pants on fire, some game theorist would explain it as rational. (Kay 2005, p. 12)