An account of similarity for economic models

Authors

Abstract

In the present paper it is argued that differences among economic models are basically differences in their selected part of the real world these models try to account for. Therefore, what turns to be important is their range of applicability to a particular target system. In this respect, an approach based on the similarity of models to a target system and to the modelers’ purposes is provided. It is also argued that models vary in values of similarity. These values will help agents to select the model that best meets the role of examining some phenomenon of interest.

Keywords:

similarity, economic models, mechanisms, possibility tree, realism