This paper examines the use of qualitative information in the construction of an agent- based model in order to study the growth of near-Zero Energy Buildings (nZEB's) in the Netherlands through the innovation systems perspective. Drawing on desktop research and semi-structured interviews, this paper offers two major findings. First, we observed that the difficulties to the development of nZEB's have been shaped by interaction and institutional barriers: the inner complexity of the building sector has decisively impacted on the growth of nZEB's. Second, exploring interviewees' understanding of the system via an agent-based model has brought fresh insights about the problem. Overall, this is a call for an interdisciplinary approach to understand the changes required for nZEB's in their path for a successful adoption. Agent-based computational modelling, complemented with knowledge that was elicited from several stakeholders within the building sector, has helped to inspect the implication of common beliefs in the course of shaping possible futures toward a transition to nZEB's.

This paper provides a micro-foundation for dual market structure formation through partitioning processes in marketplaces by developing a computational model of interacting economic agents. We propose an agent-based modeling approach, where firms are adaptive and profit-seeking agents entering into and exiting from the market according to their (lack of) profitability. Our firms are characterized by large and small sunk costs, respectively. They locate their offerings along a unimodal demand distribution over a one-dimensional product variety, with the distribution peak constituting the center and the tails standing for the peripheries. We found that large firms may first advance toward the most abundant demand spot, the market center, and release peripheral positions as predicted by extant dual market explanations. However, we also observed that large firms may then move back toward the market fringes to reduce competitive niche overlap in the center, triggering nonlinear resource occupation behavior. Novel results indicate that resource release dynamics depend on firm-level adaptive capabilities, and that a minimum scale of production for low sunk cost firms is key to the formation of the dual structure.