Sterman, John D., "Testing Behavioral Simulation Models by Direct Experiment", 1986

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The decision rules in simulation models purport to describe decision-making behavior as it is and not as it should optimally be. Without the criterion of optimality to judge the appropriateness of a decision rule, simulation modelers must rely on empirical confirmation of the structure of their models. In models of small organizations, traditional social science methods may be used. But these methods are infeasible in models of larger systems such as industries or the macroeconomy. This paper shows how direct experiment can be used to confirm or disconfirm the decision rules in simulation models. Direct experiment uses interactive gaming in which human subjects play a role in the system being modeled. The subjects play the game in the same physical and institutional context assumed in the model, and are given the same information set, but are free to make decisions any way they wish. The behavior of the subject can then be directly compared against the behavior produced by the assumed decision rules of the model. An example is described in detail and the correspondence of the experiment to reality is discussed.

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  • 1986
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