AITIC Session 04

The architecture of complexity (Simon 1962)

Neo-

Second Law of Thermodynamics

Computational Austrian
First law of Thermodynamics

classical

Heisenberg’s Uncertainty Pr.

Economics
Newton’s Laws of motion

Economics Simulation
Mathematical (agent models)
Game Theory
Modelling
DEDUCTION
Complexity
Statistical Science
Inferences INDUCTION

Artificial Heuristics
ABDUCTION Intelligence
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Terminology
• Some Flavors of Complexity
• Simon / Kolmogorov (hierarchical systems / exact sub-patterns)
• Shannon / Duncan / Child
• Kauffmann (interdependence) etc.
• Information Entropy: sigma (pi ln one by pi)

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Simon HA (1962) The architecture of complexity.
Proceedings of the American Philosophical Society,
106(6): 467–482

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 Architecture of Complexity: Simon (1962)
• Definition of Complex System
• A complex system is one made up of a large number of
parts that interact in a non-simple way.
• In such systems, the whole is more than the sum of the
parts
• That is, given the properties of the parts and the laws of their
interaction, it is not a trivial matter to infer the properties of
the whole.

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Hierarchies around us
• Elementary particle (electron, proton, neutron) => Atom => Molecule =>
Solid/Liquid/Gas => planets & stars => galaxies
• Cell => Tissue => Organ => Circulatory/ Respiratory/ Alimentary/
Reproductive … system => animal
• (Elementary sounds) => Alphabets => words => sentences =>
paragraphs => pages => chapters/sections => book => subject / library
section => University => Country => Earth …

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Physical /biological vs. Social hierarchies
• Important difference between physical /biological and
social hierarchies
• physical /biological hierarchies: Usually described in
spatial terms
• Though, nerve cells and telephone wires allow specific strong
interactions at great distances
• Social hierarchies: We identify social hierarchies not by
observing who lives close to whom but by observing who
interacts with whom (p. 469) The Barabesi article takes off from here.
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Scope and Objective of Simon’s study
• Scope is limited to:
• Particular kinds of complex systems encountered in the behavioral
sciences. The complex system is composed of subsystems that, in
turn, have their own subsystems…
• Objective is to:
• Cast some light on the ways in which complexity exhibits itself
wherever it is found in nature.

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 The watchmakers’ parable
• Hora uses a hierarchical system of sub-assemblies to make watches
• 10 components go to make the lowest level of sub-assemblies (L1)
• 10 numbers L2 make the next level of sub-assembly (L2)
• 10 numbers L3 make the next level of sub-assembly L3
• A watch has roughly 1000 components. Hora makes 111 sub-assys/ watch.
• If disturbed while working, Hora loses only the part of the work done with
the present level of sub-assembly he is working on
• Tempus does not use sub-assemblies. If disturbed he starts from scratch
• Given the same extent of disturbances, Tempus will take much more time
to assemble a watch, compared to Hora

Simon concludes that hierarchically arranged systems will be more durable—in nature and
society—and are more likely to be noticed by humans. 8
 Emergence of Order
• The time required for the evolution of a complex form from simple
elements depends critically on the numbers and distribution of potential
intermediate stable forms (p. 471)
• If the process absorbs free energy, the complex system will have a smaller
entropy than the element
• For most biological systems, the net inflow of free energy has to be supplied from
the sun or some other source
• To sustain as an orderly system (over time), the system absorbs energy
(negentropy) from the environment (Prigogine’s work that got him the Noble Prize)
• The effect of the existence of stable intermediate forms exercises a powerful effect on the
evolution of complex forms that may be likened to the dramatic effect of catalysts—that form
intermediate products just like sub-assemblies—upon reaction rates and steady state
distribution of reaction products in open systems

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 Problem solving
• State and process desc.: What is a circle vs. how to draw a circle (p. 479)
• Human problem solving is basically a form of means-end analysis that
aims at discovering a process description of the path that leads to a
desired goal
• In problem solving, a partial result that represents recognizable progress
toward the goal plays the role of a stable sub-assembly
• In the first two Simon articles, (satisficing on offer price of house and rat in a
maze) we have good sub-assemblies for more complex inquiry thru’ agent models
• Enormous problem mazes are cut down to quite reasonable size
• Recall the example of looking at only about 100 possibilities in 16th move in chess.
• Example 2: Opening a 10-dialled lock of a safe, each dial having settings from 0-99

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Simple descriptions of complex systems
• Make use of the world’s redundancy to describe that world simply
• Matrix having patterns inside (p. 478)
• Only 20 different amino acids make up (000s of) proteins
• Less than 150 elements make up all known physical matter
• Ontogeny recapitulates phylogeny (p. 480)
• The individual organism, in its development, goes through stages that
resemble some of its ancestral forms.
• The fact that the human embryo develops gill bars and then modifies them
for other purposes is a familiar particular belonging to the generalization.

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References

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Complexity from Shannon/Duncan/Child
• C. Shannon’s concept of complexity focuses on deciphering the key content of
a message, and does not concern decoding an entire message.
• What part of a message is considered key, and what is considered non-key is entirely a
function of the end-use the deciphered message is put to
• Shannon complexity is a measure of the degree of difficulty in obtaining the key
information in a message
• J. Child: Environmental Complexity refers to the heterogeneity and range of
environmental activities which are relevant to an organization’s operations.
The greater the degree of complexity, the more a profusion of relevant
environmental information is likely to be experienced by organizational
decision-makers
• R. Duncan: Between two decisions, Duncan would consider the decision having
a higher numbers of relevant factors in the consideration set as more complex

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 This does not appear to be very
Nearly-decomposable Systems different from the concept of
“loose coupling”.

• Definition. A nearly-decomposable system is a hierarchical system

where interactions among sub-systems are weak, but not negligible
and interactions within sub-systems is strong.
• Example: The Areas (departments) in a B-school. SM, Mktg, OM-QT etc.
• In a nearly decomposable system, the short-run behavior of each of
the component subsystems is approximately independent of the
short-run behavior of the other components
• In the long run, the behavior of any one of the components depends
in only an aggregate way on the behaviour of the other components

Example corresponding to temperature change in cubicles in connected rooms of an office building

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