In this paper I analyse the main strengths and weaknesses of agent-based computational models. I first describe how agent-based simulations can complement more traditional modelling techniques. Then, I rationalise the main theoretical critiques against the use of simulation, which point to the...

In July 2003 a new Road Code was approved by the Italian parliament. Among many reforms whose validity is not questioned here, the new law states that on three-lane motorways the right lane should not be reserved anymore to slow vehicles alone. As in two-lane roads, all vehicles must now drive...

Multiplicative models of firm dynamics ‘à la Gibrat’ have become a standard reference in industrial organization. However, some unpleasant properties of their implied dynamics – namely, their explosive or implosive behaviour (firm size and number collapsing to zero or increasing...