We use ABMs in research to, firstly, abductively formulate hypotheses on the
behavior of real-world agents as cause for empirical realities (cf. Axelrod, 2007;
Brenner and Werker, 2007). Agent-based models allow studying dynamics under
ill-defined behavioral rules (heuristics) coping with uncertainty about the future
(cf. Lempert, 2002) and implementing elements specific for the context and
locality. Moreover, the real economic system can be implemented largely
disaggregated and unabridged, as well as calibrated to empirical data (cf. Boero
and Squazzoni, 2005). Secondly, we use empirically calibrated ABMs to evaluate
the effects of particular policy interventions. For the remainder of this section, we
make the case that and explain how policy makers can use ABMs to their
advantage.