Meeting 1 - Introduction and Causal Loop
Meeting 1 - Introduction and Causal Loop
Pidd (1996, p.15) defines a model as: an external and explicit representation of part of
reality as seen by the people who wish to use that model to understand, to change, to
manage and to control that part of reality
In order for a model to be useful to decision makers, it must provide some view on future
behavior.
all models are wrong (Box 1976), as they cannot generate precise point-predictions of
future events in social systems, the challenge is to create models that are useful through
extensive testing, benchmarking against available data, and continual iteration between
experiments with the virtual world of simulation and the real world (Sterman 2002).
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CHARACTERISTICS OF DYNAMIC COMPLEXITY
ADAPTED FROM (STERMAN, 2000)
1. symptoms of a problem are often separated from the actual problem by time and space
2. complex systems often behave counter to human intuition
3. policy intervention in complex systems can frequently yield short-term successes but
long-term failure, or the reverse
4. internal system feedback often counters external policy intervention
5. it is better to structure a system to withstand uncertain external shocks than to try to
predict those external shocks;
6. real-world complex systems are not in equilibrium and are continually changing.
System dynamic use causal loop diagrams for "brainstorming" and model
creation, they are particularly helpful when used to present important ideas
from a model that has already been created .
Causal loop diagrams are inherently weak because they do not distinguish
between information flows and conserved (noninformation) flows. As a result,
they can blur direct causal relationships between flows and stocks.
Endogenous refers to the idea that actions are caused by factors from inside
of the system. With the endogenous viewpoint behavior can be explained
through the system’s feedback structure, and not through the actions of an
external, uncontrollable, exogenous source.
Exogenous, as the value has its source outside of the system. In other words,
this exogenous variable is not influenced by any other model variable.