Stuart A. Umpleby The George Washington University Washington, DC From Complexity to Reflexivity: The Next Step in the Systems Sciences

Four models currently used in science Linear causality Circular causality Complexity Reflexivity

1. Linear causality The way most dissertations are written Many statistical techniques, including correlation and regression analysis Hypotheses can be falsified Propositions can be assigned a level of statistical significance The objective is to create descriptions which correspond to observations

2. Circular causality Essential to any regulatory process – thermostat, automatic assembly line, driving a car, managing an organization Can be modeled with causal influence diagrams and system dynamics models Often a psychological variable is involved – perception of, desire for

3. Complexity theory Primarily a method of computer simulation – cellular automata, “the game of life” A very general concept – competition among species or corporations, conjectures and refutations in philosophy Differentiation and selection – creation of new variety, selection of appropriate variety Explains emergence

4. Reflexivity Requires operations on two levels – observation and participation Involves self-reference, hence paradox, hence inconsistency Violates three informal fallacies – circular arguments, the ad hominem fallacy, the fallacy of accent (two levels)

A further explanation of complexity theory

Self-organization What is currently called complexity theory can be seen as an extension of the work on self-organizing systems around 1960 There are two processes – differentiation or the creation of new variety and selection of appropriate variety The first is done within an organism or organization; the second is done by the environment

Earlier versions of the idea 1 Adam Smith used the idea in The Wealth of Nations when he described the process of innovation and competition among firms or nations (1776) Charles Darwin used the idea when describing genetic mutation and selection by the environment (1859) Karl Popper used the idea in philosophy -- conjectures and refutations (1950s)

Earlier versions of the idea 2 B.F. Skinner’s concept of operant conditioning is similar in that desired behaviors are reinforced, thus increasing their frequency (1957) Donald T. Campbell in a famous article, “Reforms as Experiments” used the idea when suggesting a strategy of political and social development (1969)

Research on cognition in the 1950s Ashby: Can a mechanical chess player outplay its designer? Should an artificial intelligence device be designed, or should it learn? Is the task to create useful equipment or to understand cognition? Engineers chose to design equipment Cyberneticians chose to study cognition

Conferences on self-organization Three conferences on self-organization were held around 1960 The original conception was that a self- organizing system interacted with its environment Von Foerster opposed this conception, saying such a system would be organized by its environment, not by itself

Three thought experiments Magnetic cubes in a box with ping pong balls as separators In first experiment all 6 faces of all cubes have positive charges facing out In second experiment 3 of 6 faces of each cube have positive charges facing out In third experiment 5 of 6 faces of each cube have positive charges facing out

Von Foerster’s “order from noise” The box is open to energy -- shaking the box provides energy The box is closed to information -- during each experiment the interaction rules among the cubes do not change For the first two experiments the results are not surprising and not interesting In the third experiment new “order” emerges Is order produced by energy or info?

Self Organizing Systems Early Conception Self Organizing System Environment Ashby’s Conception Organisms Self Organizing System

Ashby’s principle of self- organization Any isolated, determinate, dynamic system obeying unchanging laws will develop organisms that are adapted to their environments Organisms and environments taken together constitute the self-organizing system

Measuring organization Shannon’s information theory Information is that which reduces uncertainty Redundancy A measure of organization

Information theory Shannon’s measure of uncertainty N = Number of Elements k = number of categories n1 = number of elements in the first category H = [N log N – n1 log n1 - … -nk log nk] / N Redundancy as a measure of organization R = 1 – [ H (actual) / H (max) ]

Automatic Processes Imagine a system composed of states. Some states are stable. Some are not The system will tend to move toward the stable equilibrial states As it does so, it selects, thereby organizing itself These selections constitute self-organization Every system as it goes toward equilibrium organizes itself

Examples of self-organization Competitive exclusion in a number system The US telegraph industry Behavior in families Amasia Learning, Automatic Self Strategizer Structure as a cause: NE blackout

Example of self-organization Ross Ashby proposed the following example of self-organization Imagine a computer filled with single digit numbers from 0 to 9 Take any two numbers at random, multiply them, replace the first number with the right hand digit of the product, return the second number to its original position Perform this operation repeatedly

Competitive Exclusion in an Number System Number Of TimeCompeting NumbersEvensOddsZeros Time Partition H R N: n,n,,..., n 1 10: 1,1,1,1,1,1,1,1,1, : 2,2,2,1,1,1, : 5,2,1,1, : 7,2, : 8,1, : 9, :

Example of self-organization As the interaction rule operates, the evens drive out the odds (an even times an even gives an even; an even times an odd gives an even; an odd times an odd gives an odd) Furthermore the zeros drive out their fellow evens Apply Shannon’s redundancy measure to the numbers at each point in time

Example of self-organization Redundancy increases from zero (one instance of each number) to 1 (all zeros) As the system goes to equilibrium, it selects, thereby organizing itself

Self-organization in industry The same analysis can be applied to the history of the telegraph industry in the U.S. Each line represents a company. Where the line starts (on the left) indicates when the company was founded. Each company then merges with another company By 1900 all companies had merged into Western Union

Redundancy in the U.S. Telegraph Industry YEAR # OF CO’S. (k) PARTITION UNCERTAINTY REDUNDANCY : 1,1,1,1, : 1,..., : 6,3,2,2,1,.., : 15,15,5,2,2,2,1,.., : 35,25,6,5,1,.., : 82,7,1,.., : 95,5,3,1,.., : 104,6,4,4,3,1,.., : 132,1,1,1,1, : 141,1,1, :

Self-organization in industry Organization in the telegraph industry, as measured by redundancy, went from zero (a few independent companies) to 1 (all telegraph operators in one company)

A general design rule In order to change any system, expose it to an environment such that the interaction between the system and its environment moves the system in the direction you want it to go Examples –making steel –educating a child –incentive systems in management –government regulation of business

Ashby’s conception of self-organization It is a very general theory It encompasses Darwin’s theory of natural selection and learning theory It emphasizes the selection process rather than the generation of new variety It can explain “emergence” because selection at a lower level can lead to new variety at a higher level

A new conception of a system Ashby’s notion of self-organization requires a new conception of a system, one that is open to energy but closed to information In his conception a self-organizing system is open to energy – the shaking of the box – but closed to information – the interaction rules do not change during the period of observation

Conventional conceptions of open and closed systems Open Receptive to new information Closed Not open to new information Rigid, unchanging, dogmatic

Scientific conceptions of open and closed systems Physics: entropy increases in thermodynamically closed systems Biology: living systems are open to matter/energy and information Management: from closed to open systems conceptualizations after WW II Self-organization: open to energy, closed to information (interaction rules do not change)

Work at the Santa Fe Institute A new computer simulation method Extending the “game of life” and von Neumann’s cellular automata Life is said to exist at the “edge of chaos” A search for a new second law of thermodynamics

Background on reflexivity theory

Observation Self-awareness

Reflexivity in a social system

What is “reflexivity” and why is it important? Definitions As context, the informal fallacies Descriptions of several reflexive theories –Heinz von Foerster –Vladimir Lefebvre –Donald Schon –George Soros

Definitions “reflection” – the return of light or sound waves from a surface; the action of bending or folding back; an idea or opinion made as a result of meditation “reflexive” -- a relation that exists between an entity and itself “self-reference” – such statements lead to paradox, a form of inconsistency

Four reflexive theories Heinz von Foerster: Include the observer in the domain of science (1974) Vladimir Lefebvre: Reflect on the ethical system one is using (1982) Donald Schon: Management as reflective practice (1983) George Soros: Individuals are actors as well as observers of economic and political systems (1987)

Von Foerster’s reflexive theory The observer should be included within the domain of science A theory of biology should be able to explain the existence of theories of biology “Reality” is a personal construct Individuals bear ethical responsibility not only for their actions but also for the world as they perceive it

Lefebvre’s reflexive theory There are two systems of ethical cognition People are “imprinted” with one or the other ethical system at an early age One’s first response is always to act in accord with the imprinted ethical system However, one can learn the other ethical system and act in accord with it when one realizes that the imprinted system is not working

Uses of Lefebvre’s theory Was used at the highest levels in both the US and the USSR during the collapse of the USSR to prevent misunderstandings Was NOT used during the break up of the former Yugoslavia People in Sarajevo said in 2004 that Lefebvre’s theory explained both why the war happened and why conflict remained after the war Beginning in 2000 it was actively used in education and psychotherapy in Russia

Soros’s reflexive theory Soros’s theory is compatible with second order cybernetics and other systems sciences Soros uses little of the language of cybernetics and systems science Soros’s theory provides a link between second order cybernetics and economics, finance, and political science

Reception of Soros’s work Soros’s theory is becoming known in the systems and cybernetics community Soros’s theory is attracting more attention from economists and finance professors, due to the recent financial crisis Soros has a participatory, not purely descriptive, theory of social systems

Soros on the philosophy of science Soros rejects Popper’s conception of “the unity of method,” the idea that all disciplines, including the social sciences, should use the same methods of inquiry as the natural sciences Soros says in social systems there are two processes – observation and participation The natural sciences require only observation

The informal fallacies 1. Fallacies of presumption which are concerned with errors in thought – circular reasoning, circular causality 2. Fallacies of relevance which raise emotional considerations – the ad hominem fallacy, including the observer 3. Fallacies of ambiguity which involve problems with language – levels of analysis, self-reference

Which models are acceptable? 1. Linear causality – the dominant conception of science 2. Circular causality – used in first order cybernetics, but involves circularity 3. Self-organization – Stephen Wolfram’s “new kind of science,” complex systems 4. Reflexivity – second order cybernetics, violates 3 informal fallacies

Acceptable and unacceptable models Models 1 and 3 – linear causality and self- organization – are acceptable. No informal fallacies are involved Model 2 – circular causality – is suspect. It involves circular reasoning. But it has proven to be useful Model 4 – reflexivity – violates 3 informal fallacies, so is highly suspect. Scientists shun it, do not take it seriously

Cybernetics and the informal fallacies Second order cybernetics violates all three informal fallacies (thought, emotion, language) It does not “sound right.” People conclude it cannot “be right” But the informal fallacies are just “rules of thumb”

A decision is required Should traditions concerning the form of arguments limit the scope of science? Or, should the subject matter of science be guided by curiosity and the desire to construct explanations of phenomena? Cyberneticians have chosen to study certain phenomena, even if they need to use unconventional ideas and methods

Change is needed in social science The financial crisis provides ample evidence that change is needed in our thinking about social systems But economists say that no change in theory is needed Where are they stuck? What is blocking them?

Three changes are needed in economics 1. Economists, and other social scientists, need to accept the uncertainty that accompanies violating the informal fallacies 2. Social scientists need to expand the philosophy of science by including the observer in the domain of science 3. Economists need a model of economic systems which allows participants to be observers and observers to be participants. This is a large step beyond behavioral economics

Our conception of science is the obstacle Practicing managers and social scientists will readily agree that human beings are both observers and participants in social systems Indeed, they say this idea is “not new” But this perspective is not permitted by the current conception of science Our conception of science needs to be expanded in order to encompass social systems

A presentation for the Seminar on Reflexive Systems The George Washington University Washington, DC September 29, 2009