Agentbasedmodelling.edited x

Running Head: AGENT BASED MODELLING 1

AGENT BASED MODELING 4

Agent-based modeling

Student name

Professor

Course

Date of submission

Why are they becoming an influential methodology to study social systems? 

Agent-based modeling is a powerful technique used in the simulation modeling application, which is mainly used to solve real-world business problems. Some of the approaches include organization, marketing, and diffusion applications. The system is modeled in nature consist of a free collection of more than that one form of technology. As an entity, agent-based modeling is has emerged as one of the influential methodologies used in the social system. This can be captured in three advantageous methodological forms since it capturers up-and-coming phenomena, natural descriptive system, and it is flexible (Helbing,2018). Heterogeneous exhibit interactions and entities can categorize it. Importantly it’s a tool that should be applied in policy and decision making to improve practice importance. Prospective and retrospective policies in modeling represent a dynamic and diverge in a mechanical system. Besides that, it allows experimenting and anticipating variety that is an efficient decision process and helps in managing complex uncertainties. Simulations involve multi distinct, which plays a significant role in developing best practices in social systems (Epstein,2017).

Research the role of ABM in the process of policymaking and implementation particularly in complex areas and provide an example to demonstrate the application of ABM. 

ABM is an action that involves a systematic, integrated approach that has a significant influence on the decision-making process. Its implementation broadly affects cost reduction, pricing, and product decision because of the random series of activities. ABM is an essential aspect of decision making by developing corporate strategy. This strategy includes long plan decisions and competitive advantage by focusing on the main events that promote growth. However, the main objective of corporate planning is maintaining a moderate price and quantity output. Besides, it plays a significant role in making quick analysis activities to improve value-based production. For instance, in a manufacturing application movement, waiting and setup and verification activities should be done using the right procedure. As a policymaking tool, it reduces response time in case of feedback and bridges the gap between the firm and its estimated customer. These roles enable firms and corporate organizations to have an adequate allocation of resources and eliminate unnecessary budgets. ABM enables managers to have a high throughput in business, which improves produce, system, and process that stimulate growth (Fernando,2019)

References

Epstein J. M. (2017, May 14). Agent-based modeling: Methods and techniques for simulating human systems. Retrieved from https://www.pnas.org/content/99/suppl_3/7280

Fernando, A. C. (2019). Business Ethics: An Indian Perspective. Delhi, India: Pearson Education India.

Helbing, D., Farkas. (2018, May 13). Activity-Based Management (ABM): Definition, Importance, and Areas. Retrieved from http://www.yourarticlelibrary.com/accounting/management-accounting/activity-based-management-abm-definition-importance-and-areas/53113