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Add to cartWhy is everything we know about the world a model?
Think of languages, words, maps, statistics, books, databases, computer programs and the mental models.
They will never be the real world.
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What is a benefit that our models have a strong congruence with the world?
We are successful species because of it.
Our complex and sophisticated mental models are developed from direct, intimate experiences of nature, people and organizations immediately around us.
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How do our models fall short of representing the real world fully?
- We keep track of only a few variables at a time in our heads.
- We draw illogical conclusions from accurate assumptions or vice versa.
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What did Kenneth Boulding (economist) say about systems?
A system is a big black box of which we can't unlock the locks and all we can find about it, is what goes in and goes out.
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What is the structure of a system?
Its interlocking stocks, flows and feedback loops. The diagrams of boxes and arrows are pictures of a system.
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Structure determines what behaviors are latent in the system. What are the 2 feedback loops?
1. A goal-seeking balancing feedback loop: approaches or hold a dynamic equilibrium.
2. A reinforcing feedback loop: generates exponential growth.
Together they are capable of growth, decay or equilibrium.
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System thinkers strive to?
Understand the connections between the hand releasing, the slinky (event), the resulting oscillations (behavior) and the mechanical characteristics of the Slinky's helical coil (structure)
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What can we say about economic system thinkers?
- They look primarily at the behavior level.
- They are more focused on flows than stocks.
- Can result in: misunderstanding of the dynamics of economic systems of the reasons for their behavior.
- Good for predicting near-term performance of economy.
- Quite bad at predicting the longer-term performance.
- Terrible at telling on how to improve the performance of the economy.
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Create quizBAFRO - Chapter 4: Why systems surprise us
Radboud Universiteit Nijmegen
18 questions
Nederlands
06-07-2024
Universiteit / Radboud Universiteit Nijmegen / Business Administration
Why is everything we know about the world a model?
Think of languages, words, maps, statistics, books, databases, computer programs and the mental models.What is a benefit that our models have a strong congruence with the world?
We are successful species because of it.How do our models fall short of representing the real world fully?
- We keep track of only a few variables at a time in our heads.What did Kenneth Boulding (economist) say about systems?
A system is a big black box of which we can't unlock the locks and all we can find about it, is what goes in and goes out.What is the structure of a system?
Its interlocking stocks, flows and feedback loops. The diagrams of boxes and arrows are pictures of a system.Structure determines what behaviors are latent in the system. What are the 2 feedback loops?
1. A goal-seeking balancing feedback loop: approaches or hold a dynamic equilibrium.System thinkers strive to?
Understand the connections between the hand releasing, the slinky (event), the resulting oscillations (behavior) and the mechanical characteristics of the Slinky's helical coil (structure)What can we say about economic system thinkers?
- They look primarily at the behavior level.Why do systems surprise us?
What does it mean that many relationships in systems are nonlinear?
Why are nonlinearities the chief cause of the shifting dominance that characterizes several of the systems?
The world is a continuum because there are no separate systems. Where to draw a boundary around a system?
What is the most important input at any given time?
Any physical entity with multiple inputs and outputs is surrounded by layers of limits. Limits put on by the environment or by their own system. How do you get insight in which factor is limiting?
Why will there always be limits to growth?
Why is some foresight essential when there are long delays in feedback loops?
Bounded rationality challenges the economic theory from Adam Smith. What does Smith assume?
Why are some systems structured to function well despite bounded rationality?