Heterogeneous agents in the context of "Economic theory"

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⭐ Core Definition: Heterogeneous agents

In economic theory and econometrics, the term heterogeneity refers to differences across the units being studied. For example, a macroeconomic model in which consumers are assumed to differ from one another is said to have heterogeneous agents.

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Heterogeneous agents in the context of Complex adaptive system

A complex adaptive system (CAS) is a system that is complex in that it is a dynamic network of interactions, but the behavior of the ensemble may not be predictable according to the behavior of the components. It is adaptive in that the individual and collective behavior mutate and self-organize corresponding to the change-initiating micro-event or collection of events. It is a "complex macroscopic collection" of relatively "similar and partially connected micro-structures" formed in order to adapt to the changing environment and increase their survivability as a macro-structure. The Complex Adaptive Systems approach builds on replicator dynamics.

The study of complex adaptive systems, a subset of nonlinear dynamical systems, is an interdisciplinary matter that attempts to blend insights from the natural and social sciences to develop system-level models and insights that allow for heterogeneous agents, phase transition, and emergent behavior.

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