Market Growth

John Morecroft’s implementation of Jay Forrester’s Market Growth model, replicated by an MIT colleague whose name is lost to the mists of time, from:

Morecroft, J. D. W. (1983). System Dynamics: Portraying Bounded Rationality. Omega, 11(2), 131-142.

This paper examines the linkages between system dynamics and the Carnegie school in their treatment of human decision making. It is argued that the structure of system dynamics models implicitly assumes bounded rationality in decision making and that recognition of this assumption would aid system dynamicists in model construction and in communication to other social science disciplines. The paper begins by examining Simon’s “Principle of Bounded Rationality” which draws attention to the cognitive limitations on the information gathering and processing powers of human decision makers. Forrester’s “Market Growth Model” is used to illustrate the central theme that system dynamics models are portrayals of bounded rationality. Close examination of the model formulation reveals decision functions involving simple rules of thumb and limited information content. …

Continue reading “Market Growth”

Bifurcating Salmon

A nifty paper on nonlinear dynamics of salmon populations caught my eye on ArXiv.org today. The math is straightforward and elegant, so I replicated the model in Vensim.

A three-species model explaining cyclic dominance of pacific salmon

Authors: Christian Guill, Barbara Drossel, Wolfram Just, Eddy Carmack

Abstract: The four-year oscillations of the number of spawning sockeye salmon (Oncorhynchus nerka) that return to their native stream within the Fraser River basin in Canada are a striking example of population oscillations. The period of the oscillation corresponds to the dominant generation time of these fish. Various – not fully convincing – explanations for these oscillations have been proposed, including stochastic influences, depensatory fishing, or genetic effects. Here, we show that the oscillations can be explained as a stable dynamical attractor of the population dynamics, resulting from a strong resonance near a Neimark Sacker bifurcation. This explains not only the long-term persistence of these oscillations, but also reproduces correctly the empirical sequence of salmon abundance within one period of the oscillations. Furthermore, it explains the observation that these oscillations occur only in sockeye stocks originating from large oligotrophic lakes, and that they are usually not observed in salmon species that have a longer generation time.

The paper does a nice job of connecting behavior to structure, and of relating the emergence of oscillations to eigenvalues in the linearized system.

Units balance, though I had to add a couple implicit scale factors to do so.

The general results are qualitatitively replicable. I haven’t tried to precisely reproduce the authors’ bifurcation diagram and other experiments, in part because I couldn’t find a precise specification of numerical methods used (time step, integration method), so I wouldn’t expect to succeed.

Unlike most SD models, this is a hybrid discrete-continuous system. Salmon, predator and zooplankton populations evolve continuously during a growing season, but with discrete transitions between seasons.

The model uses SAMPLE IF TRUE, so you need an advanced version of Vensim to run it, or the free Model Reader. (It should be possible to replace the SAMPLE IF TRUE if an enterprising person wanted a PLE version). It would also be a good candidate for an application of SHIFT IF TRUE if someone wanted to experiment with the cohort age structure.

sockeye.vmf

For a more policy-oriented take on salmon, check out Andy Ford’s work on smolt migration.

Urban Dynamics

This is an updated version of Urban Dynamics, the classic by Forrester et al.

John Richardson upgraded the diagrams and cleaned up a few variable names that had typos.

I added some units equivalents and fixed a few variables in order to resolve existing errors. The model is now free of units errors, except for 7 warnings about use of dimensioned inputs to lookups (not uncommon practice, but it would be good to normalize these to suppress the warnings and make the model parameterization more flexible). There are also some runtime warnings about lookup bounds that I have not investigated (take a look – there could be a good paper lurking here).

Behavior is identical to that of the original from the standard Vensim distribution.

Urban Dynamics 2010-06-14.vpm

Urban Dynamics 2010-06-14.mdl

Urban Dynamics 2010-06-14.vmf

DICE

This is a replication of William Nordhaus’ original DICE model, as described in Managing the Global Commons and a 1992 Science article and Cowles Foundation working paper that preceded it.

There are many good things about this model, but also some bad. If you are thinking of using it as a platform for expansion, read my dissertation first.

Units balance.

I provide several versions:

  1. Model with simple heuristics replacing the time-vector decisions in the original; runs in Vensim PLE
  2. Full model, with decisions implemented as vectors of points over time; requires Vensim Pro or DSS
  3. Same as #2, but with VECTOR LOOKUP replaced with VECTOR ELM MAP; supports earlier versions of Pro or DSS
    • DICE-vec-6-elm.mdl (you’ll also want a copy of DICE-vec-6.vpm above, so that you can extract the supporting optimization control files)

Note that there may be minor variances from the published versions, e.g. that transversality coefficients for the state variables (i.e. terminal values of the states for optimization) are not included. The optimizations use fewer time decision points than the original GAMS equivalents. These do not have any significant effect on the outcome.

WORLD3-03

This is the latest instance of the WORLD3 model, as in Limits to Growth – the 30 year update, from the standard Vensim distribution. It’s not much changed from the 1972 original used in Limits to Growth, which is documented in great detail in Dynamics of Growth in a Finite World (half off at Pegasus as of this moment).

There have been many critiques of this model, including the fairly famous Models of Doom. Many are ideological screeds that miss the point, and many modern critics do not appear to have read the book. The only good, comprehensive technical critique of World3 that I’m aware of is Wil Thissen’s thesis, Investigations into the Club of Rome’s WORLD3 model: lessons for understanding complicated models (Eindhoven, 1978). Portions appeared in IEEE Transactions.

My take on the more sensible critiques is that they show two things:

  • WORLD3 is an imperfect expression of the underlying ideas in Limits to Growth.
  • WORLD3 doesn’t have the policy space to capture competing viewpoints about the global situation; in particular it does not represent markets and technology as many see them.

It doesn’t necessarily follow from those facts that the underlying ideas of Limits are wrong. We still have to grapple with the consequences of exponential growth confronting finite planetary boundaries with long perception and action delays.

I’ve written some other material on limits here.

Files: WORLD3-03 (zipped archive of Vensim models and constant changes)

Payments for Environmental Services

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Model Name: payments, penalties, and environmental ethic

Citation: Dudley, R. 2007. Payments, penalties, payouts, and environmental ethics: a system dynamics examination Sustainability: Science, Practice, & Policy 3(2):24-35. http://ejournal.nbii.org/archives/vol3iss2/0706-013.dudley.html.

Source: Richard G. Dudley

Copyright: Richard G. Dudley (2007)

License: Gnu GPL

Peer reviewed: Yes (probably when submitted for publication?)

Units balance: Yes

Format: Vensim

Target audience: People interested in the concept of payments for environmental services as a means of improving land use and conservation of natural resources.

Questions answered: How might land users’ environmental ethic be influenced by, and influence, payments for environmental services.

Software: Vensim

Files:

http://modelwiki.metasd.com/images/d/db/SSPP_PES_and_Env_Ethic_2007-09-25.vmf

Models in the Special Issue of the System Dynamics Review on Environmental and Resource Systems

Models in the Special Issue of the System Dynamics Review on Environmental and Resource Systems, Andrew Ford & Robert Cavana, Editors. System Dynamics Review, Volume 20, Number 2, Summer of 2004.

  • Modeling the Effects of a Log Export Ban in Indonesia by Richard G. Dudley
  • The Dynamics of Water Scarcity in Irrigated Landscapes: Mazarron and Aguilas in South-eastern Spain by Julia Martinez Fernandez & Angel Esteve Selma
  • Misperceptions of Basic Dynamics: The Case of Renewable Resource Management by Erling Moxnes
  • Models for Management of Wildlife Populations: Lessons from Spectacle Bears in Zoos and Gizzly Bears in Yellowstone by Lisa Faust, Rosemary Jackson, Andrew Ford, Joanne Earnhardt and Steven Thompson
  • Modeling a Blue-Green Algae Bloom by Steven Arquitt & Ron Johnstone

See the following web site for article summaries and downloadable models described in this special issue:  http://www.wsu.edu/~forda/SIOpen.html

Submitted by Richard Dudley, 23 April 2008

Lorenz Attractor

This is an implementation of Lorenz’ groundbreaking model that exhibits continuous-time chaos.

A google search turns up lots of good information on this model. For more advanced material, try google scholar.

I didn’t replicate this from Lorenz’ original 1963 article, Deterministic Nonperiodic Flow, but you can find a copy here.

Updated!

lorenz2.vmf

lorenz2.vpm

World3 Population Sector

Population sector extracted from the World3 model.

Documented in Dynamics of Growth in a Finite World, by Dennis L. Meadows, William W. Behrens III, Donella H. Meadows, Roger F. Naill, Jorgen Randers, and Erich K.O. Zahn. 1974 ISBN 0-9600294-4-3 . See also Limits to Growth, The 30-Year Update, by Dennis Meadows and Eric Tapley. ISBN 1-931498-85-7 .

See my article at The other bathtubs – population

World3-Population (Vensim .vpm)

World3-Population (Vensim .mdl)

World3-Population (Vensim .vmf)