Concept Architecture
Concept
Theoretically, Agent-Based Model is a computational modelling framework that represents complex systems as collections of autonomous agents interacting according to predefined behavioural rules within a specified environment. It is founded on complexity theory, complex adaptive systems and computational economics. The concept exists to investigate how individual-level behaviours and interactions generate emergent population-level outcomes that cannot be derived directly from aggregate equations.
Mathematically, an Agent-Based Model is represented by a population of agents, state variables, behavioural transition rules and an interaction structure that evolves over discrete time steps. Unlike equation-based models, there is no universally recognised canonical mathematical formula. Instead, the mathematical framework consists of algorithmic state-transition functions, stochastic processes and simulation methods that generate aggregate outcomes through repeated agent interactions.
In practice, Agent-Based Models are implemented using simulation software in which each agent is assigned attributes, decision rules and interaction mechanisms. Model parameters are calibrated using empirical data, expert opinion or published evidence, and uncertainty is explored through repeated simulation. In health economics, Agent-Based Models are used to evaluate disease transmission, healthcare utilisation, technology adoption, behavioural interventions, screening programmes and healthcare system dynamics.
Purpose
Used to simulate complex healthcare systems in which heterogeneous individuals interact dynamically, allowing evaluation of emergent outcomes, intervention effects and policy scenarios that cannot be adequately represented using aggregate models.
Mathematical Formulae
Primary Formula
There is no universally recognised canonical mathematical formula.
Supporting Formulae
Agent state transition:
S?(t + 1) = f(S?(t), E(t), N?(t), ?)
Population outcome:
Y(t) = g(S?(t), S?(t), ?, S?(t))
Related Mathematical Methods
- Stochastic Simulation
- Monte Carlo Simulation
- Markov Processes
- Complex Systems Modelling
- Network Modelling
- Discrete Event Simulation
- Calibration
- Sensitivity Analysis
Example
A health economic evaluation models 100,000 individuals with different ages, risk factors and healthcare-seeking behaviours. Each individual independently decides whether to receive vaccination based on perceived risk and previous interactions. Repeated simulation estimates infection incidence, healthcare costs and quality-adjusted life-years over a 20-year horizon, allowing comparison of alternative vaccination policies.
Excel Implementation
| Function | Example Formula | Health Economics Application |
|---|---|---|
| RAND | =RAND() | Generate stochastic agent behaviour |
| IF | =IF(B2<$F$1,"Vaccinate","Do Not Vaccinate") | Apply behavioural decision rules |
| INDEX | =INDEX(Table1,MATCH(A2,IDs,0),3) | Retrieve agent-specific characteristics |
| SUMIFS | =SUMIFS(C:C,D:D,"Infected") | Aggregate outcomes across agent populations |
VBA (Optional)
Automate iterative agent simulation, behavioural updating and aggregation of health and economic outcomes across multiple simulation runs.
Sources
- Epstein JM. Generative Social Science: Studies in Agent-Based Computational Modeling.
- Railsback SF, Grimm V. Agent-Based and Individual-Based Modelling: A Practical Introduction.
- Briggs A, Claxton K, Sculpher M. Decision Modelling for Health Economic Evaluation.
- ISPOR-SMDM Modeling Good Research Practices Task Force Reports.
- Grimm V, et al. The ODD Protocol: A Review and First Update. Ecological Modelling.
Related Concepts (4)
Library
Publications
1
Applying Dynamic Simulation Modeling Methods in Health Care Delivery Research — The SIMULATE Checklist: Report of the ISPOR Simulation Modeling Emerging Good Practices Task Force — Marshall, Burgos-Liz, IJzerman, Osgood, Padula, Higashi, Wong, Pasupathy & Crown, Vol. 18, No. 1 ed., 2015 (Value in Health)
The first ISPOR dynamic-simulation good-practice report, introducing system dynamics, discrete event simulation and agent-based modelling for health care delivery problems and providing the SIMULATE checklist for their application.
Journal ArticleView source →
Frequently Asked Questions (7)
What is an agent based model?
A simulation approach representing individual entities, such as patients or providers, as autonomous agents following behavioural rules, letting system patterns emerge.
Source: Bonabeau 2002
What is an agent-based model?
An agent-based model is a simulation approach that represents individual entities, such as patients or providers, as autonomous agents following behavioural rules, and lets patterns at the level of the whole system emerge from their interactions. Rather than specifying system behaviour directly, it specifies how individual agents act and interact, and observes what results. Bonabeau described how this bottom-up approach can capture phenomena, such as the spread of behaviour or disease, that arise from many individual decisions.
Source: Bonabeau 2002
What kind of simulation is an agent-based model?
An agent-based model is a simulation built from many individual agents, each following its own rules and interacting with others and with a shared environment. System-level patterns emerge from these local interactions rather than being specified directly. Agents can represent people, organisations or other entities, and they may adapt their behaviour in response to what happens around them. This bottom-up structure suits problems where heterogeneity, networks or feedback between individuals matter. In health, it has been applied to infectious disease spread and to the behaviour of care systems.
Source: Marshall et al. 2015
How does an agent-based model work?
An agent-based model works by defining a population of agents, each with characteristics and rules governing how it behaves and responds to others and its environment, then simulating their interactions over time. System-level outcomes, such as epidemics, market patterns, or congestion, emerge from the accumulated actions of the agents rather than being imposed. By running the simulation, the modeller observes how individual behaviour and interaction give rise to aggregate patterns, which can be explored under different rules and conditions.
Source: Bonabeau 2002
How does an agent-based model differ from an aggregate model?
An agent-based model represents individuals separately, each acting by its own rules, and derives system behaviour from their interactions, whereas an aggregate model represents the population by summary parameters, such as average rates, without distinguishing individuals. Agent-based models can capture heterogeneity, interaction, and emergent effects that aggregate models miss, but they are more demanding in data and computation. Aggregate models are simpler and often sufficient when individual variation and interaction do not much affect the outcome of interest.
Source: Bonabeau 2002
When is an agent-based model useful in health?
An agent-based model is useful in health where outcomes depend on interactions between individuals or on heterogeneity that aggregate models cannot capture, such as the spread of infectious disease through contact, the diffusion of behaviours, or the effects of individual decisions in a health system. By modelling agents and their interactions, it can represent transmission, networks, and adaptation that population-average models omit. It suits questions where the emergent consequences of many individual actions are central to the outcome.
Source: Bonabeau 2002
What are the limitations of agent-based models?
Agent-based models are demanding in data, since they require specifying the behaviour and interactions of individual agents, which may not be well known, and in computation, since simulating many agents is intensive. Their results can be sensitive to the rules and assumptions chosen, which are often uncertain, and the complexity can make them hard to validate and to interpret. The flexibility that lets them capture emergence also risks over-fitting or unwarranted confidence, so their assumptions and behaviour must be examined carefully.
Source: Bonabeau 2002
Trust Record
Verified by Dr Darrin Baines
British health economist
Professional identity: darrinbaines.org
Verification date: 26 Sep 2025
Content version: 1.0.0
Canonical Identity
- Persistent URI
- https://healtheconomics.wiki/concept/agent-based-model
- Term code
- HE-EM-ABM-001
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