# Counterfactual Simulation **Domain:** Modeling / Decision Support / Artificial Intelligence **Doc Type:** Technical Concept Node **Maturity:** Developed ## Definition **Counterfactual simulation** is the computational exploration of states or interventions that did not occur in the observed physical history. ## Governing Variable It governs comparison among possible futures or alternative causal histories under explicit model assumptions. ## Material and Computational Manifestation Digital twins, engineering models, policy simulations and robot-training environments can test candidate interventions before physical commitment. Computational populations can be copied and exposed to incompatible scenarios in parallel. ## Relation to Governance Counterfactual capacity expands planning but also increases the authority of the model that defines which alternatives are imaginable. [[wiki/Model-Space Sovereignty|Model-Space Sovereignty]] includes control over scenario variables and objectives. ## Failure Modes Simulated success may not transfer to reality. Missing variables, invalid causal structure and selective scenario design can make rehearsal a source of false confidence. ## Related Ontology [[wiki/Digital Twin|Digital Twin]] · [[wiki/World Modeling|World Modeling]] · [[wiki/Model Fidelity|Model Fidelity]] · [[wiki/Model Error|Model Error]]