Influence of Losing Multi-dimensional Information in an Agent-Based Model

Research output: Chapter in Book/Report/Conference proceedingChapter

1 Citation (Scopus)

Abstract

This agent-based study investigates the effect of losing information on market performance of agents in a marketplace with various quality requirements. It refines an existing model on multi-dimensional information diffusion among agents in a network. The agents need to align their supply with available markets, the quality criteria of which must match the agents’ information. Turnover (information entering and leaving the system) had a significant effect in the old model. Information items became obsolete based on age, causing a risk for the agents to lose valuable information. In the refined model presented here, an information item may become obsolete based on two additional aspects: (1) whether it is ‘in use’ for meeting the agent’s current market criteria, and (2) its value, reflecting its owner’s experience or skill with the information item. The research questions concern the influence of these two aspects on model outcomes. Two key parameters are value-threshold, below which items are candidate for disposal, and keep-chance, indicating the probability that in-use items are not disposed of. Both simulation runs and a local sensitivity analysis were performed. Simulation results show that value-threshold is a more influential parameter than keep-chance. An interesting pattern suggesting a tipping point was observed: with increasing value-threshold, agents initially reach higher quality, but then the quality diminishes again. This pattern is consistently observed for the majority of parameter settings. An explanation is that agents with only high-valued information cannot afford to lose anything. The sensitivity analysis adds insight to where keep-chance and value-threshold are most influential, and where other parameters are responsible for observed outputs. The sensitivity analysis does not provide any further insight in why the observed tipping point occurs. The paper also aims to highlight methodological issues with respect to refining an existing model in such a way that results of successive model versions are still comparable, and observed differences can be attributed to newly introduced changes
Original languageEnglish
Title of host publicationArtificial Economics and Self Organization
EditorsS. Leitner, F. Wall
Pages233-244
DOIs
Publication statusPublished - 2014

Publication series

NameLecture Notes in Economics and Mathematical Systems
PublisherSpringer International Publishing Switzerland
Number669

Fingerprint

sensitivity analysis
market
simulation
turnover
threshold value
parameter
effect
refining

Cite this

Osinga, S. A., Kramer, M. R., Hofstede, G. J., & Beulens, A. J. M. (2014). Influence of Losing Multi-dimensional Information in an Agent-Based Model. In S. Leitner, & F. Wall (Eds.), Artificial Economics and Self Organization (pp. 233-244). (Lecture Notes in Economics and Mathematical Systems; No. 669). https://doi.org/10.1007/978-3-319-00912-4_18
Osinga, S.A. ; Kramer, M.R. ; Hofstede, G.J. ; Beulens, A.J.M. / Influence of Losing Multi-dimensional Information in an Agent-Based Model. Artificial Economics and Self Organization. editor / S. Leitner ; F. Wall. 2014. pp. 233-244 (Lecture Notes in Economics and Mathematical Systems; 669).
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Osinga, SA, Kramer, MR, Hofstede, GJ & Beulens, AJM 2014, Influence of Losing Multi-dimensional Information in an Agent-Based Model. in S Leitner & F Wall (eds), Artificial Economics and Self Organization. Lecture Notes in Economics and Mathematical Systems, no. 669, pp. 233-244. https://doi.org/10.1007/978-3-319-00912-4_18

Influence of Losing Multi-dimensional Information in an Agent-Based Model. / Osinga, S.A.; Kramer, M.R.; Hofstede, G.J.; Beulens, A.J.M.

Artificial Economics and Self Organization. ed. / S. Leitner; F. Wall. 2014. p. 233-244 (Lecture Notes in Economics and Mathematical Systems; No. 669).

Research output: Chapter in Book/Report/Conference proceedingChapter

TY - CHAP

T1 - Influence of Losing Multi-dimensional Information in an Agent-Based Model

AU - Osinga, S.A.

AU - Kramer, M.R.

AU - Hofstede, G.J.

AU - Beulens, A.J.M.

PY - 2014

Y1 - 2014

N2 - This agent-based study investigates the effect of losing information on market performance of agents in a marketplace with various quality requirements. It refines an existing model on multi-dimensional information diffusion among agents in a network. The agents need to align their supply with available markets, the quality criteria of which must match the agents’ information. Turnover (information entering and leaving the system) had a significant effect in the old model. Information items became obsolete based on age, causing a risk for the agents to lose valuable information. In the refined model presented here, an information item may become obsolete based on two additional aspects: (1) whether it is ‘in use’ for meeting the agent’s current market criteria, and (2) its value, reflecting its owner’s experience or skill with the information item. The research questions concern the influence of these two aspects on model outcomes. Two key parameters are value-threshold, below which items are candidate for disposal, and keep-chance, indicating the probability that in-use items are not disposed of. Both simulation runs and a local sensitivity analysis were performed. Simulation results show that value-threshold is a more influential parameter than keep-chance. An interesting pattern suggesting a tipping point was observed: with increasing value-threshold, agents initially reach higher quality, but then the quality diminishes again. This pattern is consistently observed for the majority of parameter settings. An explanation is that agents with only high-valued information cannot afford to lose anything. The sensitivity analysis adds insight to where keep-chance and value-threshold are most influential, and where other parameters are responsible for observed outputs. The sensitivity analysis does not provide any further insight in why the observed tipping point occurs. The paper also aims to highlight methodological issues with respect to refining an existing model in such a way that results of successive model versions are still comparable, and observed differences can be attributed to newly introduced changes

AB - This agent-based study investigates the effect of losing information on market performance of agents in a marketplace with various quality requirements. It refines an existing model on multi-dimensional information diffusion among agents in a network. The agents need to align their supply with available markets, the quality criteria of which must match the agents’ information. Turnover (information entering and leaving the system) had a significant effect in the old model. Information items became obsolete based on age, causing a risk for the agents to lose valuable information. In the refined model presented here, an information item may become obsolete based on two additional aspects: (1) whether it is ‘in use’ for meeting the agent’s current market criteria, and (2) its value, reflecting its owner’s experience or skill with the information item. The research questions concern the influence of these two aspects on model outcomes. Two key parameters are value-threshold, below which items are candidate for disposal, and keep-chance, indicating the probability that in-use items are not disposed of. Both simulation runs and a local sensitivity analysis were performed. Simulation results show that value-threshold is a more influential parameter than keep-chance. An interesting pattern suggesting a tipping point was observed: with increasing value-threshold, agents initially reach higher quality, but then the quality diminishes again. This pattern is consistently observed for the majority of parameter settings. An explanation is that agents with only high-valued information cannot afford to lose anything. The sensitivity analysis adds insight to where keep-chance and value-threshold are most influential, and where other parameters are responsible for observed outputs. The sensitivity analysis does not provide any further insight in why the observed tipping point occurs. The paper also aims to highlight methodological issues with respect to refining an existing model in such a way that results of successive model versions are still comparable, and observed differences can be attributed to newly introduced changes

U2 - 10.1007/978-3-319-00912-4_18

DO - 10.1007/978-3-319-00912-4_18

M3 - Chapter

SN - 9783319009117

T3 - Lecture Notes in Economics and Mathematical Systems

SP - 233

EP - 244

BT - Artificial Economics and Self Organization

A2 - Leitner, S.

A2 - Wall, F.

ER -

Osinga SA, Kramer MR, Hofstede GJ, Beulens AJM. Influence of Losing Multi-dimensional Information in an Agent-Based Model. In Leitner S, Wall F, editors, Artificial Economics and Self Organization. 2014. p. 233-244. (Lecture Notes in Economics and Mathematical Systems; 669). https://doi.org/10.1007/978-3-319-00912-4_18