Kruse on Small-World Simulations

Johannes Kruse (Max Planck Institute for Behavioral Economics) has posted Small-World Simulations: A New Method to Test the Effect of Legal Rules on SSRN.  Here is the abstract:

Small-world simulation exposes an artificial society to a legal rule and observes what its members do. The agents are driven by language models: their conduct is not stipulated in equations but reasoned in their own words. The architecture can be turned on any legal regime; personalized speed limits are the demonstration, chosen because rational-choice and behavioral predictions there conflict. Validated against documented driving patterns, the simulation generates behavior no one wrote into it. Because language models are trained on what people say rather than do, the method estimates orderings, not levels: a benchmark, not a substitute for evidence.

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