Management Investment

Challenge

The problem was to generate a framework for investment on different opportunities related to companies based on their profit, carbon emission, payment of carbon fines, and other factors. Investors move from opportunity to opportunity using personal heuristics, and the objective was to see where investors end up investing based on all associated factors. The secondary academic objective was to compare AnyLogic, MESA, and NetLogo.

Solution

A solution was generated in AnyLogic using Agent-Based modeling. The visualization was important to see how investors were moving through the investment space.

The figure shows 25 investment opportunities with hundreds of investors making decisions. The investment opportunities evolve with time with new values that can make an investor move to that opportunity.

Outcome

This project was an academic exercise to test and understand carbon-related investment theories and support theoretical research. The research also compared three simulation methodologies with the following conclusions:

• AnyLogic and NetLogo are equally easy to use for moderate-scale projects in the sustainability area
• Repast is a bit tougher
• AnyLogic looks much better with increased complexity

Project Features

• Industry: Investment
• Model: Agent-Based
• Duration: 2 weeks