The Role of Agent Based Modelling in the Design of Management Decision Processes

Abstract

Abstract: Agent based modelling (ABM) is a new modelling paradigm and one of the most advanced practical developments in modelling. ABM promises to have far‑reaching effects on the way that business practitioners and academic researchers use information communication technologies to support decision making at different levels of management. Modern design models and architectural structures are opening up new possibilities and new application areas are coming to the foreground. Multi‑agent systems as systems of distributed artificial intelligence are now having a significant influence on information systems design, simulation and analysis. This paper focuses on the various modelling methods and technologies that are employed in the development of intelligent decision support systems. Its goal is to evaluate the role of the agent based modelling in the design of management decision processes. The paper considers the main features of intellectual agent modelling methodology, and discusses the different types modelling categorization. It does so from research base that draws from theoretical underpinnings as well as international and domestic industry practices. The basic principles of agent‑based modelling are first introduced and areas of application are then discussed from perspective of real‑world applications: flow simulation, organizational simulation, market simulation, and diffusion simulation. The classification of modelling types is discussed, together with and business application simulation frameworks.