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Simulating Bounded Rationality in Decision-Making: An Agent-Based Choice Modelling of Vehicle Purchasing

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Advances in Social Simulation (ESSA 2022)

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Abstract

This paper investigates the possibility of simulating bounded rationality effects in an agent’s decision-making scheme by limiting its capability of perceiving information and utilising a decision-making framework of Triandis’ Theory of Interpersonal Behaviour. Based on previous work on an agent-based platform, BedDeM, we propose how to capture the effects of sequential, emotional, habitual and multi-criteria decision-making. The Perception component in the agent is further extended to take into account confirmation bias and the bandwagon effect. We demonstrate the functionality of this model in the context of purchasing vehicles in Switzerland’s households.

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Acknowledgements

This project is part of the Research Program Energy-Economy-Society (EWG), which is financially supported by the Swiss Federal Office of Energy (SFOE).

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Correspondence to Khoa Nguyen .

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Nguyen, K., Piana, V., Schumann, R. (2023). Simulating Bounded Rationality in Decision-Making: An Agent-Based Choice Modelling of Vehicle Purchasing. In: Squazzoni, F. (eds) Advances in Social Simulation. ESSA 2022. Springer Proceedings in Complexity. Springer, Cham. https://doi.org/10.1007/978-3-031-34920-1_34

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