Closing Remarks

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The decision to explore or exploit is sometimes easy to recognize. Corporations invest certain amounts of money into research and development, for example. However, exploration and exploitation take on other, more subtle forms. We have seen that organizations affect the amount of exploration and exploitation that they conduct by providing incentives to agents to conform to the social code, and by controlling the amount of agent turnover and the recruitment strategy. Without exploration, stagnation develops, limiting output, especially in a dynamic environment. Too much exploration is also destructive, as resources become under-exploited. Selecting an appropriate level of exploration and exploitation depends on the desired distribution of output through time.

Clearly, the results demonstrated here are only a small fraction of the possibilities this model can provide. Readers are encouraged to pursue this investigation and others on their own. The main simulator is provided with tools for constructing societies, modifying various parameters, and observing the results.

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