Conceptual Framework of Hybrid Model with Cooperative Game Theory on Agroindustry
*M. A. Kamal, Usman Effendi

m.arif.kamal[at]ub.ac.id

Department of Agroindustrial Technology
Faculty of Agricultural Technology
Universitas Brawijaya

Abstract

This study delves into the integration framework combining System Dynamics (SD) and Agent-Based Models (ABM) to simulate cooperative game theory within the context of supply chain and agroindustry. The primary aim is to provide an understanding of the cooperative dynamics that influence these fields. By utilizing SD, the study captures the macro-level dynamics, emphasizing the importance of feedback loops and resource flows that govern the overall system behavior. These loops helps understanding how variables interact over time, influencing the supply chain and agroindustry operations on a larger scale. On the other hand, the ABM focuses on micro-level interactions, modeling the behavior and decisions of individual agents within the system. These agents represent various entities such as farmers, suppliers, distributors, and consumers. By simulating their interactions, the ABM approach allows for a detailed analysis of how individual behaviors and strategies contribute to the formation and stability of coalitions. This dual approach, integrating both macro and micro perspectives, provides a holistic view of the system. Furthermore, the hybrid SD-ABM approach enables the exploration of coalition formation, stability, and benefit distribution under different scenarios. By varying conditions of resource availability and incentive structures, the study examines how these factors impact cooperative behavior. This includes understanding the conditions under which coalitions are likely to form, how stable these coalitions are over time, and how benefits are distributed among the participating agents. This integrated framework offers valuable insights into optimizing cooperative strategies, enhancing resource allocation, and improving overall system performance in supply chains and agroindustry.

Keywords: Agent-Based Models- Cooperation Dynamics- Cooperative Game Theory- Hybrid Modelling- System Dynamics

Topic: Agro-industrial system management and regulation