System dynamics and microworlds for policymakers

Four major developments in the subject that have brought about change in system dynamics are reviewed, allowing modelers to create computer-based learning environments for policymakers to ‘play-with’ their knowledge of business and social systems and to debate policy and strategy change.

Abstract

In the past ten years, system dynamics has become more accessible to policymakers and to the academic community. The paper reviews four major developments in the subject that have brought about this change. There have been improvements in the symbols and software used to map and model system structure. New ideas have been adopted from behavioural decision theory which help to transfer policymakers' knowledge into computer models. There have been improvements in methods of simulation analysis that enable modelers and model users to gain better insight into dynamic behaviour. Greater emphasis has been placed on small transparent models, on games and on dialogue between ‘mental models’ and computer simulations. Together these developments allow modelers to create computer-based learning environments (or microworlds) for policymakers to ‘play-with’ their knowledge of business and social systems and to debate policy and strategy change. The paper concludes with some thoughts on future research.