The problem with simulating systems involving humans, where the systems are more complicated than markets, is that humans are insane. How, for example, do humans arrive at totalitarian states like the Soviet Union, Hitler’s Germany, North Korea or the Khmer Rouge’s Cambodia? To list just a few examples. No rational simulation would arrive at these outcomes.

Even markets, where motivation can be reduced to the pursuit of profit and the avoidance of risk and loss, can’t be fully simulated. The hype charged bubbles and crashes are difficult to fully capture (although there are some decent attempts).

There is no simulation framework that I know of that will capture the insanity of the human race short of simulating humans at a fine level, which is far from being possible.