Model Thinking

We live in a complex world with diverse people, firms, and governments whose behaviors aggregate to produce novel, unexpected phenomena. We see political uprisings, market crashes, and a never ending array of social trends. How do we make sense of it? Models. Evidence shows that people who think with models consistently outperform those who don’t. And, moreover people who think with lots of models outperform people who use only one. Why do models make us better thinkers? Models help us to better organize information - to make sense of that fire hose or hairball of data (choose your metaphor) available on the Internet. Models improve our abilities to make accurate forecasts. They help us make better decisions and adopt more effective strategies. They even can improve our ability to design institutions and procedures. In this class, I present a starter kit of models: I start with models of tipping points. I move on to cover models explain the wisdom of crowds, models that show why some countries are rich and some are poor, and models that help unpack the strategic decisions of firm and politicians. The models covered in this class provide a foundation for future social science classes, whether they be in economics, political science, business, or sociology. Mastering this material will give you a huge leg up in advanced courses. They also help you in life. Here’s how the course will work. For each model, I present a short, easily digestible overview lecture. Then, I’ll dig deeper. I’ll go into the technical details of the model. Those technical lectures won’t require calculus but be prepared for some algebra. For all the lectures, I’ll offer some questions and we’ll have quizzes and even a final exam. If you decide to do the deep dive, and take all the quizzes and the exam, you’ll receive a Course Certificate. If you just decide to follow along for the introductory lectures to gain some exposure that’s fine too. It’s all free. And it’s all here to help make you a better thinker!

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Syllabus

Syllabus - What you will learn from this course
Week 1
Why Model & Segregation/Peer Effects
Week 2
Aggregation & Decision Models
Week 3
Thinking Electrons: Modeling People & Categorical and Linear Models
Week 4
Tipping Points & Economic Growth
Week 5
Diversity and Innovation & Markov Processes
Week 6
Midterm Exam
Week 7
Lyapunov Functions & Coordination and Culture
Week 8
Path Dependence & Networks
Week 9
Randomness and Random Walks & Colonel Blotto
Week 10
Prisoners’ Dilemma and Collective Action & Mechanism Design
Week 11
Learning Models: Replicator Dynamics & Prediction and the Many Model Thinker
Week 12
Final Exam

FAQ

When will I have access to the lectures and assignments?

Access to lectures and assignments depends on your type of enrollment. If you take a course in audit mode, you will be able to see most course materials for free. To access graded assignments and to earn a Certificate, you will need to purchase the Certificate experience, during or after your audit. If you don't see the audit option:

What will I get if I purchase the Certificate?

When you purchase a Certificate you get access to all course materials, including graded assignments. Upon completing the course, your electronic Certificate will be added to your Accomplishments page - from there, you can print your Certificate or add it to your LinkedIn profile. If you only want to read and view the course content, you can audit the course for free.

What is the refund policy?

You will be eligible for a full refund until two weeks after your payment date, or (for courses that have just launched) until two weeks after the first session of the course begins, whichever is later. You cannot receive a refund once you’ve earned a Course Certificate, even if you complete the course within the two-week refund period. See our full refund policy.

Is financial aid available?

Yes. In select learning programs, you can apply for financial aid or a scholarship if you can’t afford the enrollment fee. If fin aid or scholarship is available for your learning program selection, you’ll find a link to apply on the description page.

Reviews

The course presents a multitude of models that enable us to analyze human and systems behavior and interactions. By making implicit assumptions explicit we can understand real world processes better.

Inch deep mile wide - great, wide-ranging overview of models. Gets a bit technical and quantitative sometimes but the information is useful to apply a more critical thinking lens to everyday life.

I love this course, and I want to thank you the University of Michigan and professor Scott for dedicating his time and putting all this information together.

This is a course for anyone who wants to be able to think logically. As an IT professional I would recommend this course to my colleagues in the Information Technology field.