Endogenous Generation of the Boom-Bust Dynamics
The Herding Simulator
The Herding Simulator is the fundamental to explain the role of the contrary payoff structure in many real world games such as The Stock Market Game for Creating Boom and Bust Dynamics.
This is a simple tool written in VB6 that allows the user to set up a network, and run simulations to analyse herd behavior, clustering and guru effects under different types of network topologies. The program is based on Andreas Krause’s model, outlined in. More advanced features such as Differential Memory and Dynamic Weights have been added to this model.
To run simulations, first create a network, by selecting the appropriate settings for network size & shape, and network type, and clicking the “Create Network” button. Then, on the lower part of the window, select the price function, and click on “Start Simulation”. Once the simulation has finished, you can analyze the degree distribution by going into the Tools menu, and selecting Network Statistics.
Dynamic Animation of Star Network
Markose, Sheri M and Alentorn, Amadeo and Krause, Andreas (2004). “Dynamic Learning, Herding and Guru Effects in Networks.”