Addresses the design and management of technological systems to create maximum value over time in the presence of inevitable uncertainty. Flexibility is the key characteristic of a system that enables it to perform effectively when operating conditions change. To obtain the highest performance, designers need to build the right kind of flexibility into the system, and managers need to determine when to exercise this flexibility. Using the new tools of "real options," analysts can now, for the first time, determine the best kind and amount of flexibility for the design of engineering systems.

The subject leads the participants to understand how best to design the economically efficient development, over time and in the context of risk, of major projects. It first presents the tools that form the basis of the analysis: economic evaluation over time, systems modeling and optimization. It then defines and illustrates the application of the tools necessary for dealing with risk: decision analysis and real options analysis.

Examines alternative conceptions and theoretical underpinnings of the notion of ``sustainable development.'' Focuses on the sustainability problems of industrial countries (i.e., aging of populations, sustainable consumption, institutional adjustments, etc.); and of developing states and economies in transition (i.e., managing growth, sustainability of production patterns, pressures of population change, etc.). Explores the sociology of knowledge around sustainability, the economic and technological dimensions and institutional imperatives. Implications for political constitution of economic performance. Graduate students are expected to explore the subject in greater depth through reading and individual research.