Agent Based Modeling

Preferences in Flood-prone Housing Markets

The price of risk is an important indicator that can facilitate decisions in any risk mitigation policy, which demands for methods to value the social costs of risk as accurately as possible. In particular, in flood risk management the central number that influences the balance between costs and benefits is the price of flood risk.

How do we build our Agent Based Models?

We first start from the theory to isolate the cause-effect relationships and to formulate hypotheses. We then collect a set of very different data, ranging from market transactions to GIS, Lab experiments and surveys to test alternative behavioral theories and compare to observed macro data.
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Agent Based Modeling

Agent-based model is a computer code representing how many heterogeneous adaptive economic agents – households, firms, farmers, governmental institutions – make decisions and interact with each other and their environment according to different behavioral rules.