agent based simulation

One of the economic phenomena that has been investigated in different ways by researchers, is the problem of bank runoff. A bank rush refers to a situation where depositors suddenly withdraw their deposits due to fear of the safety of their deposits, in a mostly emotional reaction, which can lead to bank failure.

In this article, while combining the architecture of Emotional X-machine for the emotional agent  and Norma Emergence(NOE) for the normative agent, a model for the emotional-normative agent is presented and through it, the role of social norms in preventing ​​the bank rush phenomenon through simulation in Netlogo’s environment provided.

In a situation where without the use of normative reasoning, by activating the contagion of emotions and using 15 secondary agents, we have faced 100% bank failures. By activating normative reasoning, considering the mean of 0.5 for agreeableness personality variable and using the initial normative population of 50%, the number of bank failures will decrease to about 50%. By increasing the initial normative population to 100%, bank rush is completely contained.

Finally, the results obtained from the simulation clearly confirm the effectiveness of normative variables in preventing the occurrence of bank runs.