Each chapter in Managing Complexity focuses on analyzing real-world complex systems and transferring knowledge from the complex-systems sciences to applications in business, industry and society. The interdisciplinary contributions range from markets and production through logistics, traffic control, and critical infrastructures, up to network design, information systems, social conflicts and building consensus. They serve to raise readers' awareness concerning the often counter-intuitive behavior of complex systems and to help them integrate insights gained in complexity research into everyda
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Background: Cooperation is of utmost importance to society as a whole, but is often challenged by individual self-interests. While game theory has studied this problem extensively, there is little work on interactions within and across groups with different preferences or beliefs. Yet, people from different social or cultural backgrounds often meet and interact. This can yield conflict, since behavior that is considered cooperative by one population might be perceived as non-cooperative from the viewpoint of another.Methodology and Principal Findings: To understand the dynamics and outcome of the competitive interactions within and between groups, we study game-dynamical replicator equations for multiple populations with incompatible interests and different power (be this due to different population sizes, material resources, social capital, or other factors). These equations allow us to address various important questions: For example, can cooperation in the prisoner's dilemma be promoted, when two interacting groups have different preferences? Under what conditions can costly punishment, or other mechanisms, foster the evolution of norms? When does cooperation fail, leading to antagonistic behavior, conflict, or even revolutions? And what incentives are needed to reach peaceful agreements between groups with conflicting interests?Conclusions and Significance: Our detailed quantitative analysis reveals a large variety of interesting results, which are relevant for society, law and economics, and have implications for the evolution of language and culture as well.
We outline a vision for an ambitious program to understand the economy and financial markets as a complex evolving system of coupled networks of interacting agents. This is a completely different vision from that currently used in most economic models. This view implies new challenges and opportunities for policy and managing economic crises. The dynamics of such models inherently involve sudden and sometimes dramatic changes of state. Further, the tools and approaches we use emphasize the analysis of crises rather than of calm periods. In this they respond directly to the calls of Governors Bernanke and Trichet for new approaches to macroeconomic modelling. ; The publication of this work was partially supported by the European Union's Seventh Framework Programme (FP7/2007-2013) under grant agreement No. 284709, a Coordination and Support Action in the Information and Communication Technologies activity area ('FuturICT' FET Flagship Pilot Project). Doyne Farmer, Mauro Gallegati and Cars Hommes also acknowledge financial support from the EU-7th framework collaborative project "Complexity Research Initiative for Systemic InstabilitieS (CRISIS)", grant No. 288501. Cars Hommes acknowledges financial support from the Netherlands Organization for Scientific Research (NWO), project "Understanding Financial Instability through Complex Systems". None of the above are responsible for errors in this paper. ; Publicado
The increasing integration of technology into our lives has created unprecedented volumes of data on society's everyday behaviour. Such data opens up exciting new opportunities to work towards a quantitative understanding of our complex social systems, within the realms of a new discipline known as Computational Social Science. Against a background of financial crises, riots and international epidemics, the urgent need for a greater comprehension of the complexity of our interconnected global society and an ability to apply such insights in policy decisions is clear. This manifesto outlines the objectives of this new scientific direction, considering the challenges involved in it, and the extensive impact on science, technology and society that the success of this endeavour is likely to bring about. ; The publication of this work was partially supported by the European Union's Seventh Framework Programme (FP7/2007–2013) under grant agreement No. 284709, a Coordination and Support Action in the Information and Communication Technologies activity area ('FuturICT' FET Flagship Pilot Project). We are grateful to the anonymous reviewers for the insightful comments. ; Publicado
We present the main messages of a European Expert Round Table (ERT) on the unintended side effects (unseens) of the digital transition. Seventeen experts provided 42 propositions from ten different perspectives as input for the ERT. A full-day ERT deliberated communalities and relationships among these unseens and provided suggestions on (i) what the major unseens are; (ii) how rebound effects of digital transitioning may become the subject of overarching research; and (iii) what unseens should become subjects of transdisciplinary theory and practice processes for developing socially robust orientations. With respect to the latter, the experts suggested that the "ownership, economic value, use and access of data" and, related to this, algorithmic decision-making call for transdisciplinary processes that may provide guidelines for key stakeholder groups on how the responsible use of digital data can be developed. A cluster-based content analysis of the propositions, the discussion and inputs of the ERT, and a theoretical analysis of major changes to levels of human systems and the human–environment relationship resulted in the following greater picture: The digital transition calls for redefining economy, labor, democracy, and humanity. Artificial Intelligence (AI)-based machines may take over major domains of human labor, reorganize supply chains, induce platform economics, and reshape the participation of economic actors in the value chain. (Digital) Knowledge and data supplement capital, labor, and natural resources as major economic variables. Digital data and technologies lead to a post-fuel industry (post-) capitalism. Traditional democratic processes can be (intentionally or unintentionally) altered by digital technologies. The unseens in this field call for special attention, research and management. Related to the conditions of ontogenetic and phylogenetic development (humanity), the ubiquitous, global, increasingly AI-shaped interlinkage of almost every human personal, social, and economic activity and ...
We present the main messages of a European Expert Round Table (ERT) on the unintended side effects (unseens) of the digital transition. Seventeen experts provided 42 propositions from ten different perspectives as input for the ERT. A full-day ERT deliberated communalities and relationships among these unseens and provided suggestions on (i) what the major unseens are; (ii) how rebound effects of digital transitioning may become the subject of overarching research; and (iii) what unseens should become subjects of transdisciplinary theory and practice processes for developing socially robust orientations. With respect to the latter, the experts suggested that the "ownership, economic value, use and access of data" and, related to this, algorithmic decision-making call for transdisciplinary processes that may provide guidelines for key stakeholder groups on how the responsible use of digital data can be developed. A cluster-based content analysis of the propositions, the discussion and inputs of the ERT, and a theoretical analysis of major changes to levels of human systems and the human–environment relationship resulted in the following greater picture: The digital transition calls for redefining economy, labor, democracy, and humanity. Artificial Intelligence (AI)-based machines may take over major domains of human labor, reorganize supply chains, induce platform economics, and reshape the participation of economic actors in the value chain. (Digital) Knowledge and data supplement capital, labor, and natural resources as major economic variables. Digital data and technologies lead to a post-fuel industry (post-) capitalism. Traditional democratic processes can be (intentionally or unintentionally) altered by digital technologies. The unseens in this field call for special attention, research and management. Related to the conditions of ontogenetic and phylogenetic development (humanity), the ubiquitous, global, increasingly AI-shaped interlinkage of almost every human personal, social, and economic activity and ...