A Recent Overview 2016 of SD and AB Modeling and Simulation Integration
A Recent Overview 2016 of SD and AB Modeling and Simulation Integration
A Recent Overview 2016 of SD and AB Modeling and Simulation Integration
Abstract: Modelling and simulation aim to reproduce the structure and imitate the behavior of real-life
systems. For complex dynamic systems, System Dynamics (SD) and Agent-based (AB) modelling are two
widely used modelling paradigms that prior to the early 2010’s have traditionally been viewed as mutually
exclusive alternatives. This literature review seeks to update the work of Scholl (2001) and Macal, (2010) by
providing an overview of attempts to integrate SD and AB over the last ten years. First, the building blocks of
both paradigms are presented. Second, their capabilities are contrasted, in order to explore how their integration
can yield insights that cannot be generated with one methodology alone. Then, an overview is provided of
recent work comparing the outcomes of both paradigms and specifying opportunities for integration. Finally,
a critical reflection is presented. The literature review concludes that while paradigm emulation has contributed
to expanding the applications of SD, it is the dynamic combination of the two approaches that has become the
most promising research line. Integrating SD and AB, and even tools and methods from other disciplines,
makes it possible to avoid their individual pitfalls and, hence, to exploit the full potential of their
complementary characteristics, so as to provide a more complete representation of complex dynamic systems.
Keywords: System Dynamic· Agent-Based Modelling · Hybrid Models · Complex Dynamic Systems ·
multi-paradigm approach · Literature Review
1 Introduction
Modelling and simulation of complex social systems aim at increasing the understanding of the system
and testing policies with the objective to support decision-making and at times policy implementation
(Meadows and Robinson, 2002). The advantage of computational models are their capability to embrace
complex real-life systems characterized by dynamic nonlinear relationships. Another substantial benefit
is that what-if scenarios can be tested, but intervention in reality is not required.
Agent-based (AB) modelling and System Dynamics (SD) are two widely used methodologies in
modelling complex dynamic system. While System Dynamics has a long tradition since it was founded
in the late 1950s by Forrester (1958), AB is as yet in its infancy - implying that its complete potential
has not yet been utilized (Bonabeau, 2002). Both approaches have been applied to many socio-economic
problem domains including health care (Demarest, 2011; Figueredo, Aickelin, & Siebers, 2011;
Figueredo, Siebers, Aickelin, Whitbrook, & Garibaldi, 2015; Kirandeep, Eldabi, & Young, 2013;
Mellor, Smith, Learmonth, Netshandama, & Dillingham, 2012), supply chains (Angerhofer &
Angelides, 2000; Georgiadis, Vlachos, & Iakovou, 2005; Gjerdrum, Shah, & Papageorgiou, 2001; Tako
& Robinson, 2012; Xue, Li, Shen, & Wang, 2005) and technology adoption (Chen, 2011; Fisher,
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Norvell, Sonka, & Nelson, 2000; Moser & Barrett, 2006; Schwarz & Ernst, 2009; C Swinerd &
McNaught, 2014; Zhang & Nuttall, 2007).
More than a decade ago, Scholl (2001) made a call for joint research between SD and ABM by
comparing and contrasting both approaches, and more recent works have enriched those comparisons
(Lättilä et al., 2010; Macal, 2010). However, during the last decade, and particularly during the last five
years, an explosive growth in computational capacity has enabled the emergence of more, and more
diverse, joint research in the field of modelling and simulation (Pruyt, 2015).
This article seeks to update the work of Scholl (2001) and Macal (2010) by providing an overview
of attempts to integrate SD and AB over the last ten years, with an emphasis on hybrid SD-AB models
published over the last five years. The research strategy comprised a systematic literature review.
Combinations of the following key words were used: agent-based modeling, combining, differential
equations models, system dynamics, and hybrid models. The objective was to compile literature related
to the ongoing discussions on the complementary potential of integrating SD and ABM, and to provide
an overview of recent case studies. The research question was formulated as:
What are the potential benefits of integrating System Dynamics and Agent-based
and what is the state-of-the-art in its application?
The reviewed literature was retrieved from several research databases, including ACM Digital Library,
Elsevier, Springer-link, EBSCO Host, and IEEEXplore. The works by Scholl (2001), Lättilä et al.
(2010), Macal (2010), Schieritz and Grobler (2003) and Behdani (2012) were used as a guide in
structuring the research process.
The remainder of this paper is ordered as follows: Section 2 gives a short overview about the SD
and AB paradigms, including theories behind the paradigms and building blocks and characteristics of
the resulting models. Section 3 contrasts the capabilities of SD and AB, in order to explore how their
integration can yield insights that cannot be generated with only one methodology alone. This section
draws from a review of recent studies that combine both paradigms. Section 4 presents how both
methods have been integrated during the last decade, and explores expected developments in this field.
Lastly, Section 5 concludes by answering the research question and delineating opportunities for future
research.
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3.1.1 System states: continuous aggregated vs. discrete disaggregated
SD and AB paradigms differ in the level of aggregation and their handling of time. On the one hand,
SD excels at representing continuous aggregated systems. This paradigm can account for a wide range
of feedback effects, at the cost of reducing real world diversity to aggregated average values by
assuming homogeneity and perfect mixing within stocks and flows (Parunak et al., 1998; Rahmandad
and Sterman, 2008; Sterman, 2000). However, While SD excels at modeling continuous processes, it
has difficulties in coping with discrete events (Parunak et al., 1998). Therefore, AB is more appropriate
to model discontinuous system properties (Bonabeau, 2002).
In contrast to SD, the AB paradigm inherently includes heterogeneity between agents. To account
for the diversity of agents in the real world, agents act according to properties and decision rules that
can be derived from distribution functions (Bonabeau, 2002; Epstein, 2006; Macal, 2010). By
accounting for the diversity within and between agents, AB is suitable to study problems where the
distribution of resources, costs or benefits is the focus of interest (Bonabeau, 2002; Osgood, 2007).
Empirical research has emphasized a tension between the level of analysis and the scope of the
system under study when using SD or AB alone (Alam Napitupulu, 2014; Cherif and Davidsson, 2010;
Figueredo et al., 2015; Silva et al., 2011; Thompson and Reimann, 2010). While SD can study large
systems by handling highly aggregated data, AB typically studies heterogeneous systems with relatively
limited scope.
In practice, choosing a paradigm to describe a system at an appropriate level of analysis is not
straight forward. In reality, this aspect is observer dependent: the same system can be described with
both discrete and continuous representations. Rahmandad & Sterman (2008) demonstrate that the
outcomes of equivalent SD and AB models are alike under many conditions. Other authors have come
to the same conclusion by comparing single SD and AB models in the fields of health sciences (Ahmed
et al., 2013; Figueredo et al., 2015; Figueredo and Aickelin, 2011b), economy (Alam Napitupulu, 2014),
transportation (Silva et al., 2011), software development (Cherif and Davidsson, 2010), land use (Haase
and Schwarz, 2009) and education (Thompson and Reimann, 2010).
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3.1.3 Physical space, topographies, & network structures
Inherently, SD was not designed to cope with spatial diffusion and propagation processes, but to model
the aggregate properties of such systems and so provide strategic insight into their behaviour. When the
number of entities is small and when the entities are highly dispersed or clustered, this can be
problematic (Rahmandad & Sterman, 2008). Emerging paradigms, such as spatial system dynamics
(SSD), are trying to overcome this limitation (Ahmad and Simonovic, 2004; Neuwirth and Peck, 2013).
SSD is based on coupling SD with geographic information systems (GIS) to provide feedback effects
across physical space (Ahmad and Simonovic, 2004).
In contrast, AB has the capability to distinguish physical space, topographies, and other network
structures (Bonabeau, 2002; Parunak et al., 1998; Rahmandad & Sterman, 2008). The former allows
the explicit study of the dynamics across landscapes or networks (Osgood, 2007). Hence, AB models
have proven attractive for classes of modelling problems where topographies (particularly irregular and
clustered) are crucial with respect to understanding the problem and the assessment of policies.
Furthermore, the characteristics of mobile agents in a network, able to alter system structure, can be
utilized to account generally for evolving systems in which relations disintegrate and are created
dynamically over time (Scholl, 2001). This property and the possibility to construct goal-oriented agents
makes AB models ideally suited to model many social systems and implement concepts from social
and behavioral science such as bounded rationality (Edmonds, 1999; Manson, 2006; March and Simon,
1958).
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to provide a more complete representation of complex dynamic systems (Scholl, 2001; Stemate et al.,
2007).
As explained in the previous Sections, integrating the SD and AB paradigms is a promising approach
to overcome the limitations of each single paradigm. However, the integration of SD and AB is only a
piece in a bigger puzzle (Pruyt, 2015). Recent innovations suggest that, in the future, mainstream
research frameworks and methods to model complex dynamic systems will reach beyond the boundaries
of SD, AB, and even beyond the reach of hybrid SD-AB paradigms.
Currently, the adoption and diffusion of methods and techniques from other disciplines, such as
data analytics and machine learning, are turning modeling and simulation into an interdisciplinary field
(Pruyt, 2015). This process of blending tools and methods across disciplines, which has just started, is
enabling the emergence of a new generation of computational models with radically expanded
capabilities that promise to deliver significant breakthroughs.
For several reasons, the development of this new generation of computational models is likely to
occur using high-level programming language, such as Python, R Project and Java, instead of
commercial and closed source modeling environments (Pérez, Granger, & Hunter, 2011). First, many
scientific disciplines use these languages for scientific computing and quantitative data analysis. The
open source environment fosters transparency and reproducibility of research, while these languages
facilitate the balance between full flexibility of general-purpose programming languages and ease of
use. In addition their object-orientation supports the implementation of multi-model approaches.
Examples of the methodological innovations that will lead to the new generation of models
include Exploratory Model Analysis (EMA) (Kwakkel and Pruyt, 2015, 2013) and data analytics using
tools such as PySD (Houghton, and Siegel, 2015).
5 Conclusion
This literature review seeks to update the work of Scholl (2001) and Macal (2010) by providing an
overview of attempts to integrate SD and AB over the preceding decade, with a particular focus on the
last five years. The review described the building blocks of both paradigms and contrasted their
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capabilities to explore how their integration can yield insights that cannot be generated with one
methodology alone. Five fundamental characteristics in which SD and AB differ were identified. These
characteristics are the paradigms’ capacity to model continuous aggregated and discrete disaggregated
system states; physical space, topographies, and network structures; stochastic & deterministic
phenomena; learning and adaption; and ease of model building and interpretation.
This article also provided an overview of recent work on the integration of SD and AB paradigms,
and the development of multi-paradigm and multidisciplinary modeling and simulation frameworks.
However, he unique contribution of this paper is the conclusion that while paradigm emulation has
contributed to expanding the applications of SD, the dynamic combination of the two approaches is the
most promising research line. Integrating SD and AB, as well as tools and methods from other
disciplines, makes it possible to avoid their individual pitfalls and, hence, to exploit the full potential of
their complementary characteristics, to provide more complete representations of complex dynamic
systems.
Ultimately, the widespread adoption of hybrid SD-AB models will depend on the development
of tools that are able to effectively integrate different modelling paradigms. Therefore, an area of
research that should be encouraged is the development and refinement of free and open source hybrid
modelling tools that they are easy to use and in which models can be documented.
Furthermore, this review concludes that although SD and AB are only a piece in the bigger puzzle
of innovative modeling and simulation environments, their integration into hybrid models plays an
important role in these exciting times. Breakthroughs in the integration of SD and AB can yield insights
in how to build and use smarter modeling tools to support decision-making.
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