Tim Verwaart

Agent-based modeling of consumer decision making process based on power distance and personality

Simulating consumer decision making processes involves different disciplines such as: sociology, social psychology, marketing, and computer science. In this paper, we propose an agent-based conceptual and computational model of consumer decision-making based on culture, personality and human needs. It serves as a model for individual behavior in models that investigate system-level resulting behavior. Theoretical concepts operationalized in the model are the Power Distance dimension of Hofstedes model of national culture; Extroversion, Agreeableness and Openness of Costa and McCraes five-factor model of personality, and social status and social responsibility needs. These factors are used to formulate the utility function, process and update the agent state, need recognition and action estimation modules of the consumer decision process. The model was validated against data on culture, personality, wealth and car purchasing from eleven European countries. It produces believable results for the differences of consumer purchasing across eleven European countries.

Towards dynamic reference information models: Readiness for ICT mass customisation

Current dynamic demand-driven networks make great demands on, in particular, the interoperability and agility of information systems. This paper investigates how reference information models can be used to meet these demands by enhancing ICT mass customisation. It was found that reference models for Production and Supply Chain Management do not yet sufficiently meet the requirements of a mass customisation approach. They have developed from isolated models based on pure standardisation and tailored customisation strategies, towards static repository-based models founded on segmented standardisation strategies. Existing models provide valuable knowledge for developing towards more dynamic reference information models, including the progress made by ERP vendors to make their reference models configurable. Important remaining challenges are setting up reference information models as generic models that define classes of architectures, and incorporating user-friendly means that guide users through the process of configuring specific information models.

Modelling trade and trust across cultures

Misunderstandings arise in international trade due to difference in cultural background of trade partners. Trust and the role it plays in trade are influenced by culture. Considering that trade always involves working on the relationship with the trade partner, understanding the behaviour of the other is of the essence. This paper proposes to involve cultural dimensions in the modelling of trust in trade situations. A case study is presented to show a conceptualisation of trust with respect to the cultural dimension of performance orientation versus cooperation orientation.

Comparing two sensitivity analysis approaches for two scenarios with a spatially explicit rural agent-based model

In this paper two sensitivity analysis approaches are applied for scenario analysis in a spatially explicit rural agent-based simulation. The simulation aims to assess the socioeconomic and ecological impacts of agricultural policy interventions, market dynamics and environmental change on a regional scale. Two different methods of sensitivity analysis are investigated: i) a one-at-a-time approach where each parameter is varied one after the other, while all other parameters are kept at their nominal values; and ii) a procedure based on Monte Carlo sampling where random sets of input parameter values are related to outputs of the simulation. The complementarity of both approaches and their contribution to the overall interpretation of the model is shown in two scenarios simulating alternative European policy instruments for biodiversity conservation. Results show that a mixed approach of sensitivity analysis leads to a better understanding of the models behaviour, and further enhances the description of the simulations response to changes in inputs and parameter settings.

Individualism and Collectivism in Trade Agents

Agent-Based Modeling can contribute to the understanding of international trade processes. Models for the effects of culture and cultural differences on agent behavior are required for realistic agent-based simulation of international trade. This paper makes a step toward modeling of culture in agents. The focus is one of the five dimensions of culture according to Hofstede: individualism versus collectivism. The paper presents an analysis based on social science literature about national cultures. For cultural differentiation of agent behavior, rules are formulated for individualist versus collectivist agent behavior with respect to negotiations, cooperation or defection in the delivery phase of transactions, trade partner selection, and trust. Example computations demonstrate the feasibility in multi-agent simulations.

Mastering demand and supply uncertainty with combined product and process configuration

The key challenge for mastering high uncertainty of both demand and supply is to attune products and business processes in the entire supply chain continuously to customer requirements. Product configurators have proven to be powerful tools for managing demand uncertainty. This paper assesses how configurators can be used for combined product and process configuration in order to support mastering high uncertainty of both supply and demand. It defines the dependence between product and process configuration in a typology of interdependencies. The addressed dependences go beyond the definition phase and also include the effects of unforeseen backend events during configuration and execution. Based on a case study in the Dutch flower industry, a conceptual architecture is proposed for coordination of these interdependencies and development strategies are identified.

Modeling Power Distance in Trade

Agent-based computational economics studies the nature of economic processes by means of artificial agents that simulate human behavior. Human behavior is known to be scripted by cultural background. The processes of trade partner selection and negotiation work out differently in different communities. Different communities have different norms regarding trust and opportunism. These differences are relevant for processes studied in economics, especially for international trade. This paper takes Hofstedes model of national culture as a point of departure. It models the effects on trade processes of one of the five dimensions: power distance. It formulates rules for the behavior of artificial trading agents and presents a preliminary verification of the rules in a multi-agent simulation.

Emergent Results of Artificial Economics

Preface.- Part I: Human in the System.- Part II: Financial Markets.- Part III: Organization Design.- Part IV: Macroeconomics.- Part V: Market Dynamics.- Part VI: Games.

Computational modeling of culture's consequences

This paper presents an approach to formalize the influence of culture on the decision functions of agents in social simulations. The key components are (a) a definition of the domain of study in the form of a decision model, (b) knowledge acquisition based on a dimensional theory of culture, resulting in expert validated computational models of the influence of single dimensions, and (c) a technique for integrating the knowledge about individual dimensions. The approach is developed in a line of research that studies the influence of culture on trade processes. Trade is an excellent subject for this study of cultures consequences because it is ubiquitous, relevant both socially and economically, and often increasingly cross-cultural in a globalized world.

The Influence of Culture on ABMP Negotiation Parameters

Anybody with experience in international trade knows that bargaining practices differ across the world. Models to describe bargaining, are not valid across the world unless culture is taken into account. ‘Culture’ is a notion with many meanings, some of which are contested in some disciplines. However, the leading paradigm today is widely accepted and used in both practice and academia. According to it, culture refers to the unwritten rules of society. An agent-based model of bargaining in which the agents are cultured offers several promises. It can help understand the dynamics of international negotiations in trade. It could also serve as a training tool for aspiring international traders. This paper describes an agent-based model for bargaining in the context of trade. The agents follow common sense strategies such as maximizing gain, seeking good quality, and minimizing risk. But they also have models of how to behave in an appropriate manner, such as: is it allowable to refuse a negotiation proposal; may an agent quit if it no longer likes the negotiation; must a serious concession be shown in each bid; is cheating allowed if the partner is not paying attention? These models are based on Hofstede’s five dimensions of culture (see [2] for an explanation of these dimensions). For the agents’ negotiation strategy we chose the ABMP architecture of Jonker and Treur [3]. It is based on comparing the utility of bids. The present paper applies the utility function proposed by Tykhonov et al. [4]. It covers the relevant aspects mentioned above (business value, quality and risk):