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Complex Systems Session 1 Science , reductionism and complex systems. Complex systems in society and business.
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Complex systems 1

Jan 22, 2018

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Gabor Vattay
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Page 1: Complex systems 1

Complex Systems

Session 1Science, reductionism and complex systems.

Complex systems in society and business.

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Defining Complex Systems

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Complex Systems are ..

Systems consisting of many parts: N is large

The parts interact strongly: far away from the “linear” little action – little reaction regime

Emergence: In spite of a detailed understanding of each part one-by-one, new, unexpected properties and behavior emerges on the system level

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Complicated ≠ Complex

• Many parts

• Interacting strongly

• But, no emergence due to the simple chain of causationSzEEDSM Complex Systems 2017

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Complicated ≠ Complex

No emergence due to the simple tree of

causationSzEEDSM Complex Systems 2017

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Complicated ≠ Complex

Linear amplifierSzEEDSM Complex Systems 2017

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Examples of Complex Systems

Society, city, social networks, law, political system

Economy, financial system, enterprises, management

Road traffic, electricity network, critical infrastructures

Internet, communication networks

Biochemistry, genes, ecosystems

Cancer is a complex disease

Most of our problems today belong to this category

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New paradigm: Complex Networks

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Reductionism and

Emergence in Science

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The first 300 years …

Newton introduced the scientific method

Cut the system to elementary parts

These parts are featureless

Find out how the parts interact

Newton’s theory of gravitation

Elementary particles: electrons, photons, neutrinos, mesons, gluons, W and Z bosons

Very successful in the last 300 years

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electrons and protons

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Why electrons and protons can

live forever?

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carbon synthesis

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why carbon exists in the

Universe?

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The Arrow of Time

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Ludwig Boltzmann

Rudolf Clausius

Order and Chaos

2nd law of thermodynamics

Entropy

Understanding the arrow of time

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Sugar and Coffee

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The idea behind entropy

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Ludwig Boltzmann’s grave in ViennaSzEEDSM Complex Systems 2017

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Statistical mechanics/physics was very successful

Laws of physics do not distinguish between past and

future

Yet, we see that past and future are different

Things go from order to disorder

Coffee cools, sugar dissolves …

During the last 150 years

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Wait a second!

Formation of atoms from nucleons and electrons.

More and more complicated atoms…

Formation of molecules from atoms.

More and more complicated molecules …

Formation of condensed matter from molecules.

More and more complicated forms of condensed matter …

Formation of cells, tissues …

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History of

Complex Systems Research

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The science of complexity

Ilya Prigogine

Nobel Prize in Chemistry

(1977)

Entropy can decrease

Makes life possible

Order Out of Chaos

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In the last 40 years

I can increase my order if I can export my mess to you …

Entropy inside can decrease if the system is open and can

pump it out into the environment

Understanding open dissipative structures

Understanding the complexity of nonlinear dynamics,

bifurcations, chaos.

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Understanding the Weather

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The game changer …

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Chaos and Unpredictability

Edward Lorenz (1962)

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Suggestion to boost your

garden

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The Butterfly Effect

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Butterfly Effect in the Lorenz System

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Chaos in the Double Pendulum

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Evolution

Ok! We understand that it is physically possible to increase the complexity of systems

Ok! We understand how this happens technically

But, why the hell is this happening?

Any law of evolution?

Darwinian selection is a good start, but not enough

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Evolution of Cooperation

Robert Axelrod

Evolution of Cooperation (1984)

Competition of agents

Fundamentally selfish agents will spontaneously cooperate

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Game Theory basics

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Iterated Prisoner’s Dilemma

Prisoner’s Dilemma is not a Zero Sum Game

Axelrod’s tournaments

TIT-FOR-TAT

Evolution of collaboration (worst strategies drop out)

Stupidity never pays off

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Application of Complex

Systems Concepts

in Business, Law,

Management and

Social Networks

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Examples of IPD

Tobacco (or anything) advertising

Doping in sports

Disarmament (cold war)

Climate change (?)

Business relations in general (trading apples and

bananas)

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Network Centrality

Number of degrees

Betweenness Centrality

(the number of shortest

paths passing trough)

Random Walk based

centrality

Flow based centralities

(in transport networks)

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Formal and Informal Structure in

Organizations

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Halliburton problem solving network

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Redesigned Halliburton

network

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The Human Friendship Network

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The Santa Fe Institute

(1984)

Los Alamos National Lab

Civil utilization of research ideas of Cold War

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