The approach to economic analysis stresses the principles of market economics and the adaptive behavior of individuals. System Dynamics Methodology . Forrester Consulting uses the system dynamics methodology. System dynamics was developed at MIT in the mid 1950's. The method applies the principles of engineering control theory to managerial and economic problems.
Computer models serve as laboratories for experimentation.
Modeling is faster and less expensive than experimenting through real-life trials. Modeling allows people to test theories, develop internal consistency, build consensus, discover missing information, estimate the quantitative impact of changes, discover new opportunities, and avoid mistakes. Other Activities .