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06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute [email protected]

06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute [email protected]

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Page 1: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

The Interesting In Between: Why Complexity Exists

Scott E Page

University of Michigan

Santa Fe Institute

[email protected]

Page 2: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

Background Reading

Page 3: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Outline

Attributes

Properties

The Interesting In Between

Why Complexity

Conclusions

Page 4: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Complex Adaptive Systems: Attributes

Page 5: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Complex Adaptive Systems

Networks

Source: MIT

Page 6: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Complex Adaptive Systems

NetworksAdaptation

Source: Exploring Nature

Page 7: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Complex Adaptive Systems

NetworksAdaptationInteractions

Source: Uptodate.com

Page 8: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Complex Adaptive Systems

NetworksAdaptationInteractionsDiversity

Source: Scientific American

Page 9: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

Complex Adaptive Systems: Properties

Page 10: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

Complex ≠ Complicated

Page 11: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Complex ≠ Equilibrium (w/ Shocks)

Page 12: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Complex ≠ Chaos

Source: Andrew Russell

Page 13: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

Complex ≠ Difficult

Source: Biology-direct

Page 14: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Complex = Dancing Landscapes

Source: Chris Lucas

Page 15: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Epi-Phenomena

Emergence Structures and Levels

Source: Boortz.com

Page 16: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Diffusion Limited Aggregation

Start with a seed on a plane.

Create drunken walkers who start from a random location and walk in random directions until touching the seed, at which point the walkers become immobilized.

Witten and Sander (1981)

Page 17: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Diffusion Limited Aggregation

seed

walker

Page 18: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Diffusion Limited Aggregation

Page 19: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Conway’s Game of Life

X 5

76

41 2 3

8

Cell has eight neighbors

Cell can be alive

Cell can be dead

Dead cell with 3 neighbors comes to life

Live cell with 2,3 stays alive

Page 20: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Examples

X

Page 21: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Bigger Space

Page 22: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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A New Kind of Science - Wolfram

Binary state objects arranged in a line using simple rules can create- “perfect’’ randomness- chaos- patterns- computation

Page 23: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Epi-Phenomena

Emergence Structures and LevelsEmergent Functionalities

Source: Biology-direct

Page 24: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Wolfram’s 256 Automata

N X N X

Page 25: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Rule 90

N X N X

2

8

16

64

Sum = 90

Page 26: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Rule 90

N X N X

2

8

16

64

Sum = 90

Page 27: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Four Classes of Behavior

Page 28: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Emergent Computation

Source: U of Indiana

Page 29: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Epi-Phenomena

Emergence Structures and LevelsEmergent FunctionalitiesInnovation

http://media-2.web.britannica.com/eb-media/54/4054-004-F5EB3891.jpg

Page 30: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Epi-Phenomena

Emergence Structures and LevelsEmergent FunctionalitiesInnovation Large Events

Page 31: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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A Long Tailed Distribution

Page 32: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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A Long Tailed Distribution

cities size words citations web hits book sales phone calls earthquakes moon craters wars net worth family names

Page 33: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Large Events

Source: www2002

Page 34: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Per Bak’s Sandpile

sand

table

floor

Page 35: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

Per Bak’s Sandpile

sand

table

floor

Page 36: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Self Organized Criticality

Systems may self organize into critical states. If so “events” may not be normally distributed. They may instead have long tails. Small events could have enormous consequences.

Page 37: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Epi-Phenomena

Emergence Structures and LevelsEmergent FunctionalitiesInnovationLarge Events Robustness

Source: NBC

Page 38: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

“Imagine how difficult physics would be in electrons could think.”

-Murray Gell-Mann

Page 39: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Robustness: The World of Thinking (or adapting)

Electrons

Page 40: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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The Langton Graph

Page 41: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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The Langton Graph

Page 42: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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A Thought Play

A Simple Model of Forest Fires & Bank Failures

Page 43: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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The Bank Model

Banks choose to make a risky loan each period with probability p

Page 44: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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The Bank Model

Banks choose to make a risky loan each period with probability p

Risky loans fail with probability q but have a higher yield

Page 45: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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The Bank Model

Banks choose to make a risky loan each period with probability p

Risky loans fail with probability q but have a higher yield

Failures spread to neighboring banks only if those banks have a risky loan outstanding

Page 46: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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The Forest Fire Model

Trees choose to make a grow each period with probability p

Trees get hit by lightening with probability q

Fire spreads to neighboring locations only if those locations have a tree

Page 47: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Example

Period 1: 00R00R000RR0RPeriod 2: R0R00R00RRRRR

Page 48: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Example

Period 1: 00R00R000RR0RPeriod 2: R0R00R00RRRRR Period 3: R0R00R00FRRRRPeriod 4: R0R00R00FFFFFFPeriod 5: R0R00R00000000

Page 49: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Key Insight Revisited

Bank managers should be smarter than trees!

Page 50: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Forest Fire Model Results

Yield increases in p up to a point and then falls off rather dramatically

Physicists call this a ``phase transition’’

Page 51: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Poised at the ‘edge of chaos’

rate of risky loans p*

yield

Page 52: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Smarter Banks

Let each bank learn (using a standard learning rule from psychology called Hebbian learning) whether or not to make risk loans.

Page 53: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Emergent Robustness

rate of risky loans p*

yield

Page 54: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Emergence of Firewalls

11101101110111100111

Page 55: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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The Interesting In Between

Page 56: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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The Barn

Mutation/Adaptation Network

Big Area Real Novelty

InteractionDiversity

Page 57: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Tuning Complexity

Page 58: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Page 59: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Rates of Adaptation/Learning

0: - rule aggregation

11: - rational expectations

Page 60: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Interdependencies

0: - decision theory

11: - mangle

Page 61: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Network/Connectedness

Mathematically tractable models: N = 2

-game theory N = Infinity

-averaging- random mixing

Page 62: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Rock, Paper, Scissors

Rock: All D Toxic E ColiPaper: TFT Resistant E ColiScissors: All C Sensitive E Coli

Page 63: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Rock, Paper, Scissors

Rock: All D Toxic E ColiPaper: TFT Resistant E ColiScissors: All C Sensitive E Coli

Simulations: we get “ stone soup” but diversity on a lattice or a line

Page 64: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

Rock, Paper, Scissors

Rock: All D Toxic E ColiPaper: TFT Resistant E ColiScissors: All C Sensitive E Coli

Real Experiments: we get one type E Coli ina flask but diversity on a slide

Kerr, Riley, Feldman, Bohannan (Nature 2002)

Page 65: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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alone lattice network soup

complexity

Page 66: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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Diversity

0: - representative agent model

11: - statistical averaging

Page 67: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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A complex adaptive system requiresthe right amount of “interplay” between our agents.

Page 68: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

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The Small Barn

Mutation Network

Equilibrium

Interaction Diversity

Page 69: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

The Big Barn

Mutation Network

Lack of Structure: Limiting Distributions

Interaction Diversity

Page 70: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

The Interesting in Between

Mutation Network

Complex

InteractionDiversity

Page 71: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

Why Complexity?

Page 72: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

Emergent Complexity

A lurking theory of homeocomplexus: learning rates, interaction effects, networks, and diversity adjust to maintain complexity.

Page 73: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

Enlarging the Barn

If the barn is small, the system is often both stable predictable. These two properties create an opportunity for faster adaptation – this can mean a new action (diversity), a new connection, or a new interdependency.

Page 74: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

Shrinking the Barn

If the barn is big, the system tends to be either a mangle or random. Either state creates an incentive for simple strategies, fewer connections, less diversity, and reducing interdependencies.

Page 75: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

Dali’s Barn

Mutation Network

Big Area Real Novelty

Interaction

Diversity

Page 76: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

Conclusions

Page 77: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

Big Successes

Crowds and PanicsSpatial SegregationResidential LocationTransportation NetworksInternet StructureScaling Laws

Page 78: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

We Have No Choice

Global WarmingGlobal Financial MarketsDisease TransmissionTransportationInternet Terrorism NetworksCrime

Page 79: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

Normal Science

Step 1: Construct a ModelStep 2: Produce HypothesesStep 3: Test the Hypotheses

Page 80: 06-04-09 The Interesting In Between: Why Complexity Exists Scott E Page University of Michigan Santa Fe Institute scottepage@gmail.com

06-04-09

All New

Non Analytic

Ensembles of Models

Interactions of disciplines in same model