This book follows a nonlinear approach in considering both chaotic dynamical models and agent-based simulation models of economics as well as their dynamical behaviors. Three key words arising in this context are nonlinearity, bounded rationality and heterogeneity, which make up the title of the book. Nonlinearity is the warp that runs throughout all models because systems that exhibit chaotic or other complex behavior in the absence of any exogenous disturbances are absolutely nonlinear. Bounded rationality constitutes the woof because economic systems do not exhibit complex behavior if all...