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363-0543-00L 3 Credits MSC D-PHYS , D-MTEC , D-MATH
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Agent-Based Modelling of Economic Systems

Lecturers & Examiners: Prof. em. Dr. Frank Schweitzer, Dr. Giona Casiraghi, Dr. Luca Verginer
VVZ CR n/a

Last Updated: 2026-02-05 16:39:11

Abstract

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.

Objective

A successful participant of this course is able to - understand the importance of different modeling approaches and their goals - develop and implement different classes of agent-based models - efficiently simulate agent-based models using Python and visualize the output - understand the relation between rules implemented at the firm level and the emerging economic dynamics at the macro level - grasp the influence of randomness and agent heterogeneity on macro phenomena

Content

Agent-based modeling is introduced as a bottom-up approach to understand the complex dynamics of economic systems. The course is based on formal models of agents (e.g., firms) and their interactions. Computer simulations using Python allow the quantitative analysis of a wide range of economic dynamics, e.g., growth dynamics of firms, cooperation and competition, strategic interactions in networks, and systemic failure. The course on agent-based modeling of economic systems complements our course on /Economic Dynamics and Complexity/ (offered in the fall), focusing on nonlinear dynamics from a macroeconomic perspective. Here, we take a micro perspective to study the collective interactions of firms. We start by comparing different modeling approaches to highlight the problems and challenges of system modeling. The subsequent lectures then introduce different classes of agent-based models, in particular stochastic growth models, network models of R\&D collaborations, and models of systemic risk. Weekly self-study tasks are used to apply the concepts introduced in the lectures. We practice how to simulate agent-based nonlinear models and how to interpret their results.

Resources

Lecture Notes

The lecture slides are provided as handouts - including notes and literature sources - to registered students only. All material is to be found on the Moodle platform. More details during the first lecture.

Literature

See handouts. Specific literature is provided for download, for registered students only.

General Information

Language
English
Levels
MSC
Frequency
Yearly recurring

Examination

Type
session examination
Mode
written 90 minutes
Aids
keine.
Digital
The exam takes place on devices provided by ETH Zurich.
The examination will account for 70% of the final grade and will be conducted electronically. The "closed book" rule applies: no books, no summaries, no lecture materials. The exam questions and answers will be only in English. The use of a paper-based dictionary is permitted. The course project will be graded and counts with 30% to the final grade.

Course Components

Type Title Time & Place Hours
lecture Agent-Based Modelling of Economic Systems
  • Tue 10:15-12:00 (CLA E 4)
2 h weekly
exercise Agent-Based Modelling of Economic Systems
  • Tue 09:15-10:00 (CLA E 4)
1 h weekly

Offered In

  • Management, Technology and Economics Master
  • Mathematics Master
    • Application Area (Only necessary and eligible for the Master degree in Applied Mathematics. One of the application areas specified must be selected for the category Application Area for the Master degree in Applied Mathematics. At least 8 credits are required in the chosen application area. Credits from other application areas cannot be recognised for further application areas.)
  • Physics Master
    • Electives
      • General Electives (Students may choose General Electives from the entire course programme of ETH Zurich - with the following restrictions: courses that belong to the first or second year of a Bachelor curriculum at ETH Zurich as well as courses from GESS "Science in Perspective" are not eligible here. The following courses are explicitly recommended to physics students by their lecturers. (Courses in this list may be assigned to the category "General Electives" directly in myStudies. For the category assignment of other eligible courses keep the choice "no category" and take contact with the Study Administration ( ) after having received the credits.))