Agent-Based Simulation and Cooperation in Business Organizational Settings
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This document discusses using agent-based simulation to study how cooperation can emerge in organizations of self-interested individuals. It reviews theories of cooperation from game theory and introduces the DEMO methodology for modeling organizational interactions. The study uses DEMO concepts to simulate initiator and executor agents and finds that cooperation increases when agents are more likely to interact repeatedly over time. The model could be expanded to incorporate additional complex features of organizational dynamics.
Agent-Based Simulation and Cooperation in Business Organizational Settings
- 1. AGENT-BASED SIMULATION AND COOPERATION IN ORGANIZATIONAL SETTINGS Claudia Ribeiro, José Borbinha, José Tribolet and João Pereira 20 November, 2012 SIMUL 2012 1
- 2. Problem • How can cooperation emerge in an organization of self-interested individuals? 20 November, 2012 SIMUL 2012 2
- 3. Context • Dynamics and uncertainty characterize organizations and their environments 20 November, 2012 SIMUL 2012 3
- 4. Context • If we look at an organization as a complex system.. Environment 20 November, 2012 SIMUL 2012 4
- 5. Context • In this kind of settings the primary research tool is computer simulation… 20 November, 2012 SIMUL 2012 5
- 6. Cooperation • Cooperation has been widely study in the field of Game Theory... (Axelrod, 1997) (Skyrms, 2003) 20 November, 2012 SIMUL 2012 6
- 7. Cooperation • Axelrod organized a computer tournament where people could submit their favourite strategies to play the Prisoner’s dilemma 20 November, 2012 SIMUL 2012 7
- 8. Cooperation • Skyrms compared the prisoner’s dilemma with the stag hunt game.. 20 November, 2012 SIMUL 2012 8
- 9. Cooperation • The conclusions of studying this games, are: – If it exist a high probability of future interaction – If direct or indirect reciprocity exists among players – If players trust each other (share mutual beliefs) (Axelrod, 1997) (Skyrms, 2003) 20 November, 2012 SIMUL 2012 9
- 10. Enterprise Engineering • Designing business organizations as whole has been the focus of study of Enterprise Engineering… 20 November, 2012 SIMUL 2012 10
- 11. DEMO • is composed by a methodology and a theory consistent with the constructivism paradigm • The functioning of an enterprise is intrinsic to the interaction (communication) between social actors: namely coordination acts and production acts. (Dietz, 2006) 20 November, 2012 SIMUL 2012 11
- 12. DEMO • People in organizational contexts interact according to universal patterns... (Dietz, 2006) 20 November, 2012 SIMUL 2012 12
- 13. Cooperation and DEMO • Based on cooperation and DEMO the actions and interactions of initiator and executor agent can be model as: Initiator Executor 20 November, 2012 SIMUL 2012 13
- 14. The study 20 November, 2012 SIMUL 2012 14
- 15. The Study If, after a certain time interval no new request is made to a executor, it will die out. 20 November, 2012 SIMUL 2012 15
- 16. Results 20 November, 2012 SIMUL 2012 16
- 17. Conclusions • The results of the study were according to what was expected... • The model needs to be extended to incorporate more complex features such as n-person transations... • A deliberation cycle should be included that has into account more factors, such as reputation... 20 November, 2012 SIMUL 2012 17
- 18. 20 November, 2012 SIMUL 2012 18
Editor's Notes
- #3: So, how can westudy in suchcomplexenvironments.. Howcooperation can emerge … etc.
- #4: Consequently, contemporary organizational thinking has evolved to embrace paradigms supported by Complexity Theory and its principles.
- #5: We acknowledge it as being a set of agents interacting between each other and the environment
- #6: Therefore, the bottom line is how do we specify who the agents behave and interact having into account the goal of this study.
- #7: Wewent to look athowcooperationhasbeenstudysofarandithasbeenwidelystudy in thefieldof Game Theorywith game such as thePrisonersdillemaandthestaghunt..
- #8: Wewent to look athowcooperationhasbeenstudysofarandithasbeenwidelystudy in thefieldof Game Theorywith game such as thePrisonersdillemaandthestaghunt..
- #9: Anddue to itscharacteristics, itraisesitsownsetofissues. Namelyinthis game theplayer can eitherbe bold orchoosenot to takeristandgowiththesaferchoice.. Thismeansthattrustbetweenplayersis a big factor inthis game.
- #10: Cooperation emerge ifcertainconditionsholdtrue, such as..
- #12: Design andengineeringmethodology for organizationsThatstatesthat,amongotherthings, people in organizatinalcontextsinteractaccording to an universal pattern (as demonstrated in the figure).. Explain figure
- #13: Thatstatesthat,amongotherthings, people in organizatinalcontextsinteractaccording to an universal pattern (as demonstrated in the figure).. Explain figure
- #15: Basedonthebehaviouralmodelsjustpresentedwehaveimplemeted a simulationprogramusing net logo
- #16: Wealsodevisedthreedifferentscenarios to testhowthelevelof trust wouldchangehowtheinitiatorsandexecutorsinteract in termsofnumberofcommitments
- #18: - Which gaves us confidance that putting together these concepts could be a good approach to study these kind of phenomena.