simulation

Evolutionary models mostly do not allow an analytical solution because of the complexity of functional relations, commonly including non-linear equations, for example. Therefore, numerical simulation with a computer is one of the most important modelling procedures in EE. The increasing availability of high-performance PC in the last two decades certainly contributed to the rise of EE, because a larger number of researchers could start to apply these methods.

There are many different kinds of models and methods of application, with the most basic distinction between pure theory and empirical application. Another distinction is between simulation of market processes and networks in general, because in case of the former models are more restricted to the conventional economic relations, like cost functions, demand etc. The common ground of all these models in EE is the inclusion of at least one mechanism that is evolutionary, as, for example, the replicator dynamics following Fisher's principles, a locally >frequency-dependent effect in cellular automata or a genetic algorithm.

The empirics of simulation works via two alternative ways. One is to compare empirical patterns with patterns generated by the simulation, without any direct use of empirical data in the latter. The other is to calibrate the simulation with empirical parameters and try to match the variables with observed categories. In EE, the latter method frequently poses serious difficulties because crucial quantities cannot be measured easily, like the stock of knowledge in an economic system.

The scope of simulation techniques can reach from partial to total models. An important example of the former are the Nelson-Winter models of the evolution of industries with innovation processes, an example of the latter is the modelling of complete artificial societies, like the "sugarscape" world.

Basic References

There are excellent web resources on simulation, also offering software to download.
On the Nelson-Winter-models, you may work with the DRUID and Andersen's website:
LSD Website
Esben Andersen's Website
Sugarscape Website

Semantic Field
evolution
network
simulation   frequency dependency