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363-0543-00L 3 Credits MSC D-PHYS , D-MTEC , D-MATH

Agent-Based Modelling of Economic Systems

Does not take place this semester.
VVZ CR n/a

Last Updated: 2026-06-01 11:33:45

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
Does not take place this semester.
No time listed 2 h weekly
exercise Agent-Based Modelling of Economic Systems
Does not take place this semester.
No time listed 1 h weekly

Offered In

  • Management, Technologie und Ökonomie Master
  • Mathematik Master
    • Anwendungsgebiet (Nur für das Master-Diplom in Angewandter Mathematik erforderlich und anrechenbar. In der Kategorie Anwendungsgebiet für den Master in Angewandter Mathematik muss eines der zur Auswahl stehenden Anwendungsgebiete gewählt werden. Im gewählten Anwendungsgebiet müssen mindestens 8 KP erworben werden. Kreditpunkte aus anderen Anwendungsgebieten sind nicht für weitere Anwendungsgebiete anrechenbar.)
  • Physik Master
    • Wahlfächer
      • Allgemeine Wahlfächer (Den Studierenden steht das gesamte Lehrangebot der ETH Zürich zur individuellen Auswahl offen - mit folgenden Einschränkungen: Lehrveranstaltungen aus den ersten beiden Studienjahren eines Bachelor-Curriculums der ETH Zürich sowie Lehrveranstaltungen aus GESS "Wissenschaft im Kontext" sind nicht als allgemeines Wahlfach anrechenbar. Die Dozierenden folgender Lehrveranstaltungen empfehlen sie ausdrücklich den Studierenden der Physik. (Für die Lehrveranstaltungen in dieser Liste können Sie die Kategorie "Allgemeine Wahlfächer" direkt in myStudies zuordnen. Für die Kategoriezuordnung anderer zugelassener Lehrveranstaltungen lassen Sie bei der Prüfungsanmeldung "keine Kategorie" ausgewählt und wenden Sie sich nach dem Verfügen des Prüfungsresultates an das Studiensekretariat ( ).))