Page 274 - Data Science Algorithms in a Week

In: Artificial Intelligence ISBN: 978-1-53612-677-8
Editors: L. Rabelo, S. Bhide and E. Gutierrez © 2018 Nova Science Publishers, Inc.

Chapter 11

AGENT-BASED MODELING SIMULATION

AND ITS APPLICATION TO ECOMMERCE

1
1
Oloruntomi Joledo , Edgar Gutierrez and Hatim Bukhari 2,
*
1 Department of Industrial Engineering and Management Systems,
University of Central Florida, Orlando, Florida, US
2 Department of Industrial Engineering,
University of Jeddah, Jeddah, Saudi Arabia

ABSTRACT

In the past decade, ecommerce created new business models. Information
Technology leveled the playing field for new participants, who were capable of causing
disruptive changes in every industry. We investigate how actions of stakeholders
(represented by agents) in an ecommerce system affect system performance. Viewing
consumer-to-consumer ecommerce from a systems perspective calls for integration of
different levels of behaviors. Complex interactions exist among stakeholders, the
environment and available technology and agents is the best paradigm to mimic these
behaviors. The presence of continuous and discrete behaviors coupled with stochastic and
deterministic behaviors present challenges for using standalone simulation tools to
simulate the business model. This research takes into account dynamic system
complexity and risk. By combining system dynamics at the strategy level with agent-
based models of consumer behaviors, and neural networks to find historical relationships,
a representation of the business model that makes for sound basis of decision making can
be achieved. The case study is based on a peer-to-peer lending environment.

* Corresponding Author Email: hatimbukhari@gmail.com