Applications
Routing Summary
This topic covers the four major application areas of ABM identified by Bonabeau (2002), plus the marketing strategy application from Karakaya et al. (2011). Contains 5 sub-topics and 5 total notes.
- For marketing mix and WOM strategy experiments → Marketing
- For evacuation, crowd, and traffic simulation → Flows and Crowds
- For stock market and financial modeling → Markets and Finance
- For business process and store optimization → Organizations
- For operational risk and Basel II → Risk
Sub-topics
- Marketing — COVERS: 4Ps in ABM, quality/price/promotion/opinion leader experiments, WOM amplification of marketing effects
- Flows and Crowds — COVERS: evacuation modeling, stampede phenomena, traffic jams, TRANSIMS transportation simulator
- Markets and Finance — COVERS: stock market microstructure, NASDAQ modeling, shopbots, price discovery
- Organizations — COVERS: business process simulation, store layout (Macy’s, Sainsbury’s), workforce management
- Risk — COVERS: operational risk, SCGAM approach, fat-tailed distributions, Basel II capital requirements
Cross-Cutting Concepts
- Emergence across domains: All five application areas rely on ABM’s ability to capture emergent phenomena — stampedes in crowds, price bubbles in markets, lock-in in consumer behavior, cascading failures in risk
- Heterogeneity requirement: Each domain features agents with meaningfully different properties — driver aggressiveness (traffic), trading strategies (markets), behavioral attitudes (consumers)
Sources
- abm_word_of_mouth.pdf — Bonabeau (2002), four application areas
- abm_consumer.pdf — Karakaya et al. (2011), marketing strategy application