By the seventh time step, even the reluctant agents are standing. Anecdotally, this clustering during a standing ovation occurred repeatedly throughout our simulation runs. Agents near each other seemed to stand and sit in groups. This is not surprising, however, as agents are proportionally more likely to stand if their neighbors do. Finally, the figures here show averages of simulation runs.
Individual runs are also interesting.
In fact, they frequently show signs of punctuated equilibria, which we will return to momentarily. It is useful to compare our results with those predicted under the rational expectations model with the same parameters. As can be seen by this figure, the decline under rational expectations is much steeper. This is because all agents know that K is between 26 and 30, so that the applause could not possible last less than 26 time intervals nor more than 30. Under bounded rationality, people have no prior knowledge of the range of possible K values and estimate it from the past behavior of the other agents.