Agent-based-modeling(Modeling & Simulation).pptx

modeling and simulation ppt about agent base modeling market model

1. Presentaion Topic: Agent-Based Modeling Market Model Subtitle

2. Content: Phase 1. Creating the agent population Phase 2. Defining a consumer behavior Phase 3. Adding a chart to visualize the model output Phase 4. Adding word of mouth effect

3. ABM Steps:

4. Phase 3: Add chart to Visualize the Output( Seeing is believing ) This is where your model comes alive! You add a chart that tracks key information like how many products are sold, at what price, and who's buying what. Think of it as a window into your virtual market world. This visualization lets you monitor how your model behaves and identify interesting patterns (e.g., does a price drop lead to more sales?).

5. Objective: Visualize Market Dynamic and Trend Chart Elements: Graph to show overall market activity. Sub-charts for individual buyer and seller activities. Data Points: Track sales, prices, and inventory levels over time. Interactivity: Allow users to adjust parameters (e.g., consumer preferences) and see the impact on the market.

6. Chart To Track Market Information:

7. Line Chart To track Live Market Update: Data Points: Track sales, prices, and inventory levels over time.

8. Phase: Adding a word-of-mouth effect ( The power of gossip ) Now, things get spicy! introduce "word-of-mouth," where buyers share their experiences with others. A good product recommendation can boost sales, while negative reviews can hurt a seller's reputation. This adds a realistic element to your model, simulating how information spreads and influences consumer behavior.

9. Objective: Simulate the influence of word-of-mouth on consumer choices. Rule Implementation: If a buyer is satisfied with a purchase, there's a chance they'll recommend the product to others. Feedback Loop: Positive recommendations increase the likelihood of other buyers choosing the recommended product. Impact on Sellers: Successful sellers might experience increased demand due to positive word-of-mouth.

10. Benefits : Insights: Understand how individual buyer and seller behaviors lead to market trends. Explore the impact of external factors like word-of-mouth on market dynamics. Adaptability: Adjust parameters to explore different market scenarios. Realism: Capture the emergent behavior of the market through the interactions of individual agents.

11. Example: 1. Agent Population Creation: Consumer Agents: Represent individuals in the market. Each consumer has a budget and preferences. Budget is randomly assigned between $500 and $1000. Preferences include a quality factor ranging from 0 to 1. Seller Agents: Represent entities selling products. Each seller has an inventory and a pricing strategy. Inventory is randomly set between 10 and 50 items. Pricing strategy is a random factor between 0.8 and 1.2.

12. 2. Defining Consumer Behavior: Consumer Decision-Making: Consumers decide on purchases based on their budget, preferences, and market conditions. If a consumer's budget allows and their quality preference is met, they make a purchase from a randomly chosen seller. Budget Constraints: Consumers have a limited budget for purchases. If a consumer's budget is depleted, they may delay purchases or look for more affordable options.

13. 3. Adding a Chart to Visualize the Model Output: Visualization: A bar chart is used to visualize the inventory levels of seller agents. Each bar represents a seller, and the height of the bar corresponds to the inventory level. Interpretation: The chart visually represents how seller inventories change over time as consumers make purchases. Provides insights into market dynamics and seller performance.

14. Phase 4: Adding Word of Mouth Effect: Word of Mouth: Satisfied consumers have a chance to share positive feedback. Positive feedback influences other consumers, potentially affecting their purchasing decisions. Impact: Introduces a social aspect to consumer behavior, simulating real-world word-of-mouth effects. Influences market dynamics beyond direct interactions between buyers and sellers.