Theoretical Prism

This chapter provides a novel view for an integrative system dynamics (SD) and agent-based (AB) modelling framework, which is centred around the key concepts of resources and agents, and is supported by the theoretical perspectives of resource-dependence theory and resource-based view, behavioural decision theory, and anticipatory systems theory. Each of the above theoretical perspectives provides different knowledge and explanations of socio-economic phenomena and integrating them provides a more holistic view for critically exploring and interpreting market resource and agent interrelated behaviour. Conceptualizing complex adaptive socio-economic systems as emerging out of agents’ heuristic rules and forward-looking behaviour, competing for limited resources within an imperfect environment, would further complement the general systems and complex adaptive systems theoretical frameworks, underpinning the practical integration of SD and AB modelling approaches. The resource-based theory (RBT) and the Resource dependance theory (RDT) are combined together to enhance the appreciation of resources within the system dynamics modelling and simulation approach. The behavioural decision theory and the anticipatory systems theory are combined to enhance the decision-making perspective within the agent-based modelling and simulation. Applied together they form the theoretical framework, supporting the combination and application of the above two distinctive methods.