Simulating Macro-Level Effects from Micro-Level Observations

Authored by William Rand, Edward Bishop Smith

Date Published: 2018

DOI: 10.1287/mnsc.2017.2877

Sponsors: No sponsors listed

Platforms: NetLogo

Model Documentation: Other Narrative

Model Code URLs: Model code not found

Abstract

We consider the fruits of integrating agent-based modeling (ABM) with lab-based experimental research with human subjects. While both ABM and lab experiments have similar aims-to identify the rules, tendencies, and heuristics by which individual agents make decisions and respond to external stimuli-they work toward their common goal in notably different ways. Behavioral-lab research typically exposes human subjects to experimental manipulations, or treatments, to make causal inferences by observing variation in response to the treatment. ABM researchers ascribe individual simulated ``agents{''} with decision rules describing their behavior and subsequently attempt to replicate ``macro{''} level empirical patterns. Integration of ABM and lab experiments presents advantages for both sets of researchers. ABM researchers will benefit from exposure to a larger set of empirically validated mechanisms that can add nuance and refinement to their models of human behavior and system dynamics. Lab-oriented researchers will gain from ABM a method for assessing the validity and magnitude of their findings, adjudicating between competing mechanisms, developing new theory to test in the lab, and exploring macro-level, long-run implications of subtle, micro-level observations that can be difficult to observe in the field. We offer an example of this mixed-method approach related to status, social networks, and job search and issue guidance for future research attempting such integration.
Tags
Decision Making Social networks Agent-based modeling Dynamics Segregation Theory activation networks Social norms Rational choice Design of Experiments Experiments Psychology Income inequality Applications Research methods Field experiment Weak ties