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Study the Dynamic of Institutions Using Agent Based Modeling Molood Ale Ebrahim One of the ways for analyzing institutions and their changes is field study. Although it is a good way to understand how institutions are established, how they work and affect individual decision making, and how they change, but it may take several years to change an institutions and the related factors are legion.very much. Laboratory experiment is another way for researches to observe how institutions are formed and changed in one selected society at laboratory under certain situations. The experiments factors and conditions might be restricted and the desired change might not be happened in a limited time. Also volunteers may be would not feel free under experimental situations to attitude and behave exactly like in reality. Based on the nature of SETS and especially institutions, direct test and observation in diverse situations are is not possible. Researchers use simulation as an alternative for both mentioned methods to model SETSs, analyze several policies, and make optimal decisions. Simulation is the process of creating a model in order to test, observe, and understanding the behavoiur of a real system. Agent Based Simulation and Modeling (ABM) is a suitable method to deal with complexity and ambiguity of social systems. In recent years, several models have been proposed using ABM to depict different aspects of socio-technical systems. Modeling multiple factors and parameters under different conditions without being concerneding about time or loosing cost are the main advantages of using ABM. The key benefits of ABM for studying and modeling institutions and their dynamicity are as follows: each agent can have specific features, then individual choices and decisions can be modeled; creatinge a naturale model of a system, interactions between agents, and effect of their actions on the system; representing emerging emergent patterns based on individuals' bottom-up actions and communications.