Jean-Philippe Bouchaud: Taking Stock of Complexity Economics 2/5

The video explores the study of complex systems, highlighting their significance in economics and physics. It discusses endogenous dynamics in financial markets, emphasizing feedback loops and crises. The properties of complex systems, such as fragility and multiple equilibrium states, are examined. Models for collective behavior and decision-making are introduced, with a focus on technology adoption dynamics. The impact of heterogeneity on system stability is analyzed, and the video concludes with applications and lessons for agent-based modeling.

How can small changes in parameters lead to large systemic effects?

What are the potential consequences of being stuck in a 'wrong minimum' in a complex system?

In what ways can the dynamics of collective behavior be modeled?

What insights can be drawn from the analogy of applause dynamics in social settings?