Acknowledgments This research is especially dedicated to my son, Juan David Robalino. Each page I have written represents time spent away from him. Without his understanding and patience I could have never completed the journey. Many people have supported my work directly or indirectly. Among them my parents, who fostered my intellectual curiosity. My fiancée Isabelle who read many times each page of this document; she has been an oasis amidst a sometimes deserted research landscape. My colleagues and friends John Peabody, Jorge Muñoz and Leo Morales who helped me not only with parts of the research but also with parts of my life. The members of my committee: Robert Lempert, James Hosek and James Dewar who guided the work with patience. I am particularly grateful to Rob who encouraged my interest in complex adaptive systems. This research could have never been possible without his support. I also want to thank Scott Page, John Miller, and the people from the Sante Fe Institute who read my work and provided stimulating comments. Of course, research also needs material support. I gratefully acknowledge financial support received from the RAND Graduate School through Dean Robert Klitgaard, the National Science Foundation, and the US Department of Energy. Also thanks to Evolving Logic for providing part of the hardware and software infrastructure required to simulate the models that support the research. Finally, thanks to the Pacific Ocean and the sun for the colors at the end of each day. Bangkok February 2000