dynamic systems in a wide range of disciplines including the social sciences. A substantial number of researchers, concerned with both abstract theorizing and empirical estimation, have adopted this formal methodology as an alternative to other more traditional analytical methods, which are considered unable to provide satisfactory approaches for analyzing complex dynamics systems. In a complex setting, mathematical analysis is generally limited in its ability to derive the system's dynamic characteristics, and simulation modeling is one response to complexity ( Hanneman and Patrick 1997 ; Nuno et al. 2005 ). In this work we apply simulation modeling as a tool for theory building and development ( Gilbert and Troitzsch 1999 ; Klver et al. 2003 ; Ulrich and Troitzsch 2005 ; Smith and Conrey 2007 ), for the case of theoretical approaches to the formation of risk perceptions. The application of this methodology for theory development implies the transformation of specific theoretical approaches to social dynamics into a formal model. This requires a number of explicit choices about levels of analysis, dynamic aspects to focus on, and the classification of relevant parameters. By variation of these parameters within different scenarios it is possible to investigate if the main elements of the theory (which is sometimes under-expressed in formal terms) can be reproduced ( Hanneman and Patrick 1997 ). In particular, simulation modeling permits two key theory developments: rigorous testing, refinement, and extension of existing theories that (given their complexity) have proven difficult to formulate and evaluate using standard statistical and mathematical