An Emotional Perspective for Agent-Based Computational Economics

An Emotional Perspective for Agent-Based Computational Economics

Pietro Cipresso (IULM University, Italy), Jean-Marie Dembele (Université Cheikh Anta Diop, Republic of Senegal) and Marco Villamira (IULM University, Italy)
DOI: 10.4018/978-1-60566-354-8.ch011
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Abstract

In this work, we present an analytical model of hyper-inflated economies and develop a computational model that permits us to consider expectations of the levels of future prices following emotional rules and strategies. We take into account communications among agents by adding a feedback rule. To consider emotions in agents, we use the Plutchik psycho-evolutionary theory of emotions to design an agent-based emotional architecture based on the attack-escape strategy. The computational model is based on a Barabàsi-Albert Network and considers the diffusion of information and the diffusion of emotions among agents.
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1. Analytical Model

1.1. Introduction

In the 1956 Cagan study, seven cases of hyperinflation were considered in which the levels of prices increased at a minimum rate of 50% per month. These cases did not consider extreme hyperinflation situations, such as the period from 1984 to 1985 when prices increased in Bolivia by as much as 23,000%.

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