A95-20 / 1 Artificial Life Simulation of the Textile/Apparel Marketplace: An Innovative Approach to Strategizing about Evolving Markets INVESTIGATORS: E.L. Brannon (leader), P.V. Ulrich, L.J. Anderson, T. Marshal (Auburn); R. Alan Donaldson (NC State) ABSTRACT: The marketplace can be considered a complex, spontaneous, adaptive, dynamic, self-organizing system--that is, the action of agents (consumers, firms, etc.) creates a system in a rolling equilibrium that never locks into fixed stability and never dissolves into totally chaotic turbulence. Artificial life simulation techniques are now being applied to socio-cultural evolution and adaptive social interaction behaviors. The major theme in all modeling of complex adaptive systems is that a system of agents following very simple rules evolve complex behaviors. Artificial life simulations are electronic laboratories for the study of emergent behavior in complex, self-organizing systems like the textile/apparel marketplace. The value of computer-based experiments lies in outcomes that are counterintuitive. Because intuition about dynamical systems can often be poor, artificial life simulations can be very helpful in discovering consequences underlying assumptions derived from other methods of inquiry. The primary objective of this project is to facilitate and encourage active dialog within the industry on artificial life simulation as an innovative approach to modeling marketplace dynamics and strategizing about evolving markets. GOAL: This project uses artificial life (ALife) techniques to investigate the nonequilibrium environment of the textile/apparel marketplace. The project will involve academics and industry executives in the development of ALife simulations. The goals of the project are to: 1) develop ALife simulations as springboards to strategizing about evolving markets, 2) foster the development of ALife simulation expertise within the industry, and 3) investigate ALife simulation as a method of inquiry into socio-cultural evolution and adaptive social interaction behaviors. INTRODUCTION TO ARTIFICIAL LIFE SIMULATION (ALife): The marketplace can be considered a complex, spontaneous, adaptive, dynamic, selforganizing system--that is, the action of agents (consumers, firms, etc.) creates a system in a rolling equilibrium that never locks into fixed stability and never dissolves into totally chaotic turbulence. Through the agents’ mutual accommodation and mutual rivalry, new structures and behavior patterns emerge continuously. Standard methods of inquiry and mathematics appear inadequate to analyze such complex adaptive systems (CAS). Modeling CAS using ALife has developed only in the last ten years. In that time researchers have developed a toolkit and demonstrated simulation of biological phenomena (animal behavior, insect-colony dynamics, ecological dynamics) as a National Textile Center Annual Report: August 1995 63 A9520 / 3 change in a non-equilibrium environment. 2) Leverages expertise and accelerates understanding of marketplace phenomena. 3) Utilizes ALife simulation as a new method of inquiry into complex marketplace phenomena. REPORT OF CURRENT ACTIVITY: The team has initiated the design process for a simulation based on diffusion of information/diffusion of innovation. Several other core theories in the field (theory of the firm, wheel of retailing, etc.) are being assessed as targets for simulation. Because ALife simulation software requires UNIX operating system and the X Window interface, a computer has been reintegrated for use exclusively for simulation. A member of the team participated in the Complex Systems Summer School sponsored by the Santa Fe Institute. Stuart Kauffman, one of the founders of the study of complex systems, lectured on the origins of self-organization in physical, biological, and social systems. John Miller spoke on the economy as a self-organizing system. Chris Langton, the creator of ALife simulation, demonstrated the latest version of SWARM software. The team will be working with a beta version of SWARM as soon as it is available (late Summer, 1995). In furtherance of the project goal to encourage teamwork on ALife simulation projects, the team will sponsor a seminar in association with the International Textile and Apparel Association (ITAA) in Pasadena, California in mid-October. The purpose of the seminar is to: 0 introduce ALife simulation techniques and explore their relevance to textile/apparel scholarship. 0 evaluate theoretical/empirical topics suitable for Artificial Life Simulation (i.e.: fashion theory, consumer behavior, textile/apparel consumption, trade patterns, and quick-response industry partnerships). 0 demonstrate the ALife simulation prototypes designed by the National Textile Center (NTC) team. 0 encourage participants to join in the simulation design process. 0 establish an Internet-linkage for the exchange of information and to facilitate design activities. National Textile Center Annual Report: August 1995 67 A9520 / 4 The seminar has been limited to only 24 participants to encourage active interaction between participants in assessing ALife simulation. The participants were selected from the ITAA membership based on their publication and presentation record in areas identified as appropriate for ALife simulation. Because the primary objective of this project is to facilitate and encourage active dialog within the industry on ALife simulation as an innovative approach to modeling marketplace dynamics and strategizing about evolving markets, the team plans to follow this seminar with others over the course of the ALife project to encourage participation in designing simulations and assessing the results. Progress reports will be presented at industry and academic professional meetings. Industry experts will be essential participants in the conferences and partners on teams developing simulations. 68 National Textile Center Annual Report: August 1995