Agent-based modeling is introduced as a bottom-up approach to understand the complex dynamics of social systems. Topics include the growth, entry and exit dynamics of firms, strategic interactions of firms in collaboration networks and the emergence of failure cascades and systemic risk in networks. The role of randomness, heterogeneity and network effects for economic dynamics is pointed out.

The course focuses on developing system dynamic models for socio-technical transitions. With the practical case of upscaling the use of wood for construction, students will interact with stakeholders of the wood supply chain and model 1) their relations, 2) emerging non-linear dynamics (e.g., feedbacks and tipping points), and 3) trade-offs between economic, societal, and environmental benefits.