Complexity Digest 2000.04

24-Jan-2000

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  1. Tutorial on Complexity and Agent Based Modeling, Santa Fe Institute, Business Network for Complex Systems Research Next Article Bookmark and Share


    1. Santa Fe Institute: Entering the New Millennium, Ellen Goldberg, President, Santa Fe Institute Next Article Bookmark and Share

      Ellen Goldberg mentioned the frequently asked question about a definition of "complexity". She emphasized that instead of having a generally accepted, rigorous definition it is more adequate for this young and evolving field of research to agree on some basic conditions for a system to be complex. For instance that a complex system consists of simple, interacting subsystems that lead to new, emergent properties. She gave an overview of work at SFI and described two ongoing and upcoming projects at SFI: Stefanie Forest and co-workers were able to design a computer virus detection program that is structured like the biological immune system (see video clip). The system scans bit patterns and establishes rules to discriminate between "self" (bit strings that are supposed to be on the computer) and "non-self" (bit strings that are candidates for computer viruses).

      In a new project on networks the Santa Fe Institute will install a "Beowulf" network computer and study in an interdisciplinary group different aspects of the complexity of networks in a number of different manifestations. This project will be especially important in a world where the Internet becomes a dominant factor in many areas of public and economic life.


    2. WOULD-BE WORLDS, The Science and the Surprise of Artificial Worlds, John Casti, SFI External Faculty Next Article Bookmark and Share

      Abstract: By their very nature, complex systems resist analysis by decomposition. It is just not possible to study, say, the human immune system or a stock market, by breaking it up into individual parts---molecules or traders---and looking at what these parts do in isolation. The very essence of the system lies in the interaction among all its parts, with the overall behavior of the system emerging from these interactions. So by throwing away the interactions, one also throws away any hope of actually understanding the workings of the system. The problem is that until very recently, there was no way of studying these sorts of systems as complete entities, since to do experiments with stock markets, immune systems, rainforest ecosystems and the like was either too expensive, too dangerous or just plain too difficult. But the arrival of cheap, powerful, widespread computing capability over the past decade or so has changed the situation entirely.

      This talk will examine the way in which the ability to create surrogate versions of real complex systems inside our computing machines changes the way we do science. In particular, emphasis will be laid upon the idea that these so-called ``artificial worlds'' play the role of laboratories for complex systems, laboratories that are completely analogous to the more familiar laboratories that have been used by physicists, biologists and chemists for centuries to understand the workings of matter. But these are laboratories in which we explore the informational rather than the material structure of systems. And since the ability to do controlled, repeatable experiments is a necessary precondition to the creation of a scientific theory of anything, the argument will be made that for perhaps the first time in history, we are now in a position to realistically think about the creation of a theory of complex systems.

      These essentially philosophical points will be illustrated by on-going work with the world's catastrophe insurance industry, as well as with a supermarket simulator done for the British chain J. Sainsburys.

      Editor's Comment: Casti gave his own conditions for a system to be complex: It should be "medium-sized" that is consisting of more than two and less than 1023 parts or agents. The agents should be intelligent in the sense that they follow rules (for instance football players are intelligent according to this definition). The agents behave according to local information and no agent knows what all other agents are doing. Casti's first example was that of a football simulator (see video clip). The program has as input the characteristics of real players and allows simulating games between different teams. As he discusses in one of his books even if the simulator is very good it will only give the correct prediction of averaged game results. The result of individual games can be quite different from the average outcome.


    3. Understanding Size and Scale in Biology from Molecules and Cells to Whales, Geoffrey B. West, LANL Next Article Bookmark and Share

      Abstract: Even though biological systems are the most complex physical systems known, they satisfy remarkably simple scaling laws. For example, metabolic rate (the power needed to sustain life) scales like the 3/4-power of mass over 27 orders of magnitude ranging from the molecular respiratory complex within mitochondria up through the smallest unicellular organism (mycoplasma) to the largest animals (whales) and plants (giant sequoia). Other scaling laws relate how organismal features change with size over many orders of magnitude; these include time-scales (such as lifespan and heart-rate) and sizes (such as the radius of a tree trunk or the aorta). All of these can be expressed as power laws with exponents which are typically simple multiples of 1/4. The systematics of these phenomena will be reviewed and a quantitative, unified model presented that can explain their origin, including that of the universal 1/4-power. The model is based on the fundamental observation that essentially all of life, regardless of size, is constrained, and ultimately limited, by the rate at which essential resources that sustain it can be supplied. General principles that are complementary to the principle of natural selection are proposed. Assuming that organisms have evolved a space-filling hierarchical branching network in which energy dissipated is minimized, the known structural, functional and scaling properties of many such systems, such as the cardiovascular, respiratory and that of plants can be quantitatively understood. In addition, because natural selection has acted to maximize the area of interface of these hierarchical systems with their resource environment, they are essentially fractal-like structures in four spatial dimensions, rather than three. The possible extension of these ideas to other systems, such as river networks, transport systems and corporate structures will be discussed.

      Editor's comments: West mentioned a number of curious facts about familiar complex systems: It seems that for a large variety of quite different animals (including humans) in spite of very different life spans and heart rates, the total number of heart beats is roughly the same and around one (US) billion (= 109). Surprisingly that is just slightly more than the number of expected cycles that a car engine performs during it's lifetime. West tries to formulate fundamental conditions such as the optimal use of energy by an organism that lead to scaling laws with universal exponents. The interpretation of his mathematical explanation of the 1/4 power law ("life is a 5D object") might still be a challenge in this area of quantitative theoretical biology.

      Allometric scaling of production and life-history variation in vascular plants, Brian J Enquist, Geoffrey B West, Eric L Charnov, James H Brown, Nature, 28 October 1999.

    4. Agent based Simulations: An Overview of BT's Research and Applications, Iqbal Adjali, BT Labs Next Article Bookmark and Share

      Abstract: This talk will review work done in BT in the areas of business modeling and intelligent systems design, following novel approaches inspired from complex systems and using tools like agent-based simulations and evolutionary game theory. We will present our work on the modeling and consumer behavior using agent-based simulations, and introduce the agent-based software tool ZEUS. The agent based consumer model uses real data and preserves the characteristics of customers. It allows interaction between groups of customers to be investigated. ZEUS is an agent-based software toolkit which enables the rapid and systematic engineering of agent systems both for research and the development of real-scale applications.

      Editor's comments: While SWARM is a sophisticated research and prototyping tool, ZEUS is more application oriented with considerable details in the description of the agents. It is written in Java code but there are plans to transfer it to faster programming languages. Current applications include a personal travel agent, an agent based electronic market place, home shopping agents, and enhanced network management. Future developments will include the ability of the agents to learn.


    5. Economic and Business Applications of Agent-Based Modeling: The Swarm Tool Kit, Benedikt Stefansson, CASA Next Article Bookmark and Share

      Abstract: Agent Based Models (ABMs) of economic and business systems are slowly gaining ground both in academia and industry. One of the stumbling blocks in developing such models is the lack of programming libraries which enable the users to construct complex ABMs with less effort. In 1995 the Santa Fe Institute (SFI) launched the Swarm project with the goal of providing scientists and programmers with a standard, open source' ABM tool kit. Last fall the Swarm Development Group moved from SFI and formed its own, separate, non-profit organization. I will discuss the history and lessons from the Swarm project, give a brief overview of the tool kit and some examples of its use in academic and business applications. The Swarm libraries are distributed under the GNU Library Public License and freely available on the SFI website.

      Editor's comments: Swarm is object oriented where the scheduling is also done by objects. Hierarchical models in the form of nested swarms are possible. Swarm is not yet able to run as parallel code but the infrastructure is there already. For an easier real time analysis of the simulation probe objects can be attached to agents. In one application farmers in Brasil used swarm based modeling to develop agricultural practices with less detrimental impact on the environment


    6. Diversity in Complex and Difficult Environments, Scott E. Page, SFI External Faculty Next Article Bookmark and Share

      Abstract: In this talk I distinguish between difficulty -- hard to solve isolated problems -- and complexity -- dynamic adaptive systems with feedback. A difficult problem, such as designing an efficient engine, does not change over time, though the approaches to solving it may. In contrast, complex problems, such as designing an effective marketing plan, change constantly. A good solution one day may be a poor one the next.

      The diversity of human agents helps us to cope with both difficulty and complexity. I will discuss how diversity can help lead us to optimal solutions to difficult problems. I will also comment on the role of diversity in reducing complexity and in creating robust system level performance.

      Editor's Comments: Page discussed the role of diversity in solving difficult and complex problems. In complexity there is a strategic interdependence between the agents: other agents' decisions affect every problem. Generally a difficult problem is the large number of possibilities for solutions. Page discussed a two-step approach. 1. Perspective: how to encode the problem, for instance in a formal math language. 2. Heuristics: how to search for the solution within this framework. He illustrated this process with the help of the "Ben and Jerry & ice cream landscape". When the two ice-cream manufacturer searched for the best ice cream they created a table full of ice cream samples for which ingredients changed along the two different axes: In one direction the size of the chocolate chunks would increase and in the other direction the number of chunks per serving. In this array they searched for the combination with the best chance to sell.

      Page then claimed that their simulations indicated that groups of experts often get stuck in sub-optimal solutions and that external consultants might help to find a solution in a completely different direction. Their simulations seem to indicate that under the assumption that there is only a countable set of points at which people get stuck, non-expert consultants will always find the better solution: a random collection of agents as group is better than a smart group. He didn't mention, however, how long it would take the group to find the solution. He also assumed that the agents communicated efficiently so probably his results are better not interpreted as a recommendation to have consultants run the companies. He saw global chains of restaurants like McDonalds or toys like Pokemon as a threat to diversity that change a local culture if there are no sufficiently high thresholds for replacing traditional businesses.


    7. A presentation of "Agent Base, d Simulator", Shota Hattori, Kozo Keikaku Engineering Next Article Bookmark and Share

      Work with agent-based models (abm) have a long tradition in Japan, They have translated Axelrod's work, worked on pocket pagers, and collaborated with universities to construct interview systems. They analyzed trade-offs and used Monte Carlo simulations to analyze risks. Now they want to develop practical tools to teach about non-linear concepts like the whole is more than the sum of the parts and how to assess emergence. These new ABM simulations are different from systems dynamics simulations. They used StarLogo and Swarm (with the Swarm manual translated into Japanese). The speaker also mentioned that artificial societies are often best expressed in books and novels. For instance "Ring, Spiral, Loop (refers to SFI) has been turned into a movie. Their agent based simulator is focused on educational applications in universities and social science studies. They formulated three objectives: 1. express the system in Japanese, 2. ease of use that only requires visual basic background, 3. open system, scale up, incorporate other programs in Windows environment.

      Hattori proceeded to give demos of Japanese versions of some agent-based simulation programs like "turtles", "sugar-scape", all programs written in visual basic and described with objects (see videoclip). Although current versions are two- dimensional there is no problem to generalize them to multi-dimensional versions. They all have drag-and-drop capability and log files that allow data mining. Other demos showed an international politics model that allows alliance formation between 92 countries and a forest fire model. In the future they want to use genetic algorithms and link to other programs for parallel operation and speed. Future applications include: area marketing, traffic, evacuation, forecasting business sales. So far their models failed to come up with accurate forecasts but they trigger deeper thinking. He concluded by mentioning that they will have a seminar with Josh Epstein, author of "Growing artificial societies". In the discussion section Ellen Goldberg mentioned that SFI tries to work with schools to teach children about Star Logo.

      Kozo Keikaku Engineering Inc. Agent Based Simulator Website

  2. Overview of Complex Economic Dynamics, J. Barkley Rosser, Jr. Next Article Bookmark and Share

    Perhaps the most controversial aspect of discussing complex economic dynamics involves defining the phenomenon. A broad tent view is that an economic system is complex if for endogenous reasons it does not asymptotically approach a fixed point, a limit cycle, or explode. Such dynamics can be generated by nonlinear systems, although not all nonlinear systems are complex by this definition. Such a definition includes what have been called the "four C's": cybernetics, catastrophe, chaos, and complexity. Although there has been a tendency recently to ignore the development and contributions of the earlier of these approaches, it is my view that they should be seen as linked in a stream of intellectual development and have built upon each other in an evolutionary and cumulative fashion. Later approaches bring out many of the phenomena that can be seen in the earlier approaches, but in more satisfying ways.

    A narrower tent view, if not formal definition, involves emphasizing the use of dispersed heterogeneous agent models, with no global controller, with evolving novelty, and niches, crosscutting hierarchical interactions, and out-of-equilibrium dynamics. Thomas Schelling developed such an approach without computers for racial neighborhood models. Later they appeared in the work of the Ilya Prigogine group at Brussels and the Hermann Haken synergetics group at Stuttgart in the 1980s, both of which led to applications in economics, especially in the urban and regional areas. Beginning at the end of the 1980s, the Santa Fe Institute became a major center for such modeling, with a variety of approaches and applications.

    Approaches within this later complexity approach have included artificial life models, mean-field models, self-organized criticality models, and evolutionary game theoretic models. Applications in economics of the artificial life models include models of entire societies and the evolution of trading networks. Applications of the mean-field approach include to asset bubble dynamics, to divergences in national growth rates, to evolution of spatial trading networks, to fashion dynamics and coordination failure in Keynesian models, and to macroeconomic collapse in transition economies.

    Self-organized criticality has been applied to macroeconomic fluctuations. Applications of evolutionary game theory to prisoner's dilemma models have involved both the mean-field approach and the self-organized criticality approach.

    These models of complexity imply a profound critique of the Walrasian equilibrium approach to economics and also to concepts of rational expectations. Furthermore, they raise serious issues regarding the nature of empirical testing, with new horizons and possibilities opening up. Finally, they have influenced policy debates with advocates of both government intervention and laissez-faire drawing upon such models to support their views. In any case, the accumulation of the influence of these models and those of the earlier of the "four C's" is arguably reaching a critical point of influence upon the economics profession.

    • On the Complexities of Complex Economic Dynamics, Rosser, J. Barkley, Jr., _Journal of Economic Perspectives_, 13(4), 169-192, 1999
    • From Catastrophe to Chaos: A General Theory of Economic Discontinuities, Rosser, J. Barkley, Jr., 2nd edition, Volume 1: Mathematics, Microeconomics, Macroeconomics, and Finance_, Boston: Kluwer Academic Publishers, in press.

      Contributed by J. Barkley Rosser, Jr. James Madison University, http://cob.jmu.edu/rosserjb


  3. Do Quantum Computations Require Infinite Precision?, David Meyer Next Article Bookmark and Share

    The excitement in the past few years about quantum algorithms and quantum communication protocols arose because in some cases they are more efficient than any possible classical way of achieving the same goal. These results are thus analogous to earlier "no hidden variables" theorems which demonstrated that certain quantum situations could not be explained by any underlying classical model satisfying natural conditions. For the recent computational complexity results, however, there was some initial concern that the additional quantum computational power might be slipping in with infinite precision specification of parameters in the algorithms---something which is known to be possible with real number classical computation. Several people quickly showed that this concern was unfounded, namely that the quantum algorithms which had been found to be more efficient than classical ones continued to be so even when their parameters were only specified with finite precision.

    In a recent paper, David Meyer (UCSD) asks the analogous question: Is infinite precision required for one of the traditional "no hidden variables" theorems to be true?, and finds that the answer is "yes". The Kochen-Specker (KS) theorem addresses the possibility of pre-specified (i.e., classical) outcomes to measurements on a three dimensional quantum system. More precisely, since such a measurement corresponds to a triad of orthogonal vectors (the eigenvectors of the measurement operator), only one of which is observed in a given measurement, the question is whether for any set of such triads, exactly one vector can be specified in each triad to be the outcome of that measurement. Kochen and Specker constructed a (finite) set of triads for which this is not possible, and concluded that there could be no classical hidden variables which determine the results of measurement on the quantum system. Meyer's observation is that these triads must be measured with infinite precision for this to work: If you take the (infinite) set of triads constructed from unit vectors with rational components, this set of triads is dense in the set of all triads, so there are rational triads indistinguishable from any one of the KS triads by finite precision measurement. Furthermore, a single vector from each rational triad *can* be pre-specified as the measurement outcome. (See a picture illustrating how to do this.) Thus there is no KS contradiction, and one cannot conclude that there is no classical hidden variable model.

    Adrian Kent (Cambridge) immediately generalized this result to arbitrary finite dimensional real or complex Hilbert spaces. He and Rob Clifton (Pittsburgh) subsequently developed a hidden variables model based on these ideas. In response, Jim Ax and Simon Kochen (Princeton) have tried to formalize what should be meant by a finite precision Kochen-Specker theorem. Adan Cabello (Sevilla) has also commented on the interpretation of these results and David Mermin (Cornell) argues that continuity of probabilities weighs against nullification.

    Editor's Comment: This contribution is a little more technical and was intended to clarify a thread on discrete space-time models discussed on a NECSI mailing list. Meyer concludes his argument: "(...) no quantum-over-classical advantage for information processing can be derived from the Kochen-Specker theorem alone. "

    • Finite precision measurement nullifies the Kochen-Specker theorem, David A. Meyer, arXiv,quant-ph/9905080, Phys. Rev. Lett. 83 (1999) 3751
    • Non-contextual hidden variables and physical measurements, Adrian Kent, arXiv,quant-ph/9906006, Phys. Rev. Lett. 83 (1999) 3755
    • Simulating quantum mechanics by non-contextual hidden variables, Rob Clifton, arXiv,quant-ph/9908031
    • A Kochen-Specker theorem for imprecisely specified measurements, N. David Mermin, arXiv,quant-ph/9912081

    Contributed by David Meyer, UCSD


  4. Voice-selective areas in human auditory cortex, Nature Next Article Bookmark and Share

    It has been known for a while that the brain has evolved highly sophisticated, specialized neurons or group of neurons that act as dedicated "special-purpose processor" for fast completion of important perceptual or cognitive tasks. Modern computer can improve performance (for instance in graphically challenging games) by freeing up the central processing unit (CPU) from demanding graphics tasks (such as three-dimensional geometric transformations) by delegating these tasks to a special "graphics board". Similarly the brain has been known to have special neuronal units dedicated to recognizing faces or facial expressions that are important for social interactions.

    One would expect that something similar also exists in the auditory domain: Among the flood of sounds that are continuously surrounding us there are specific types of sounds that are especially important to us a social beings: Sounds that come from a speaking person. We know that there are brain areas that are dedicated to speech processing that give meaning to the sounds in translating the sound patterns into recognizable words as sentences. That would correspond to the capability of recognizing one's grandmother independent of whether she is looking straight at us, turning sideways or even standing on her head. Another important social factor is to not only to understand the explicit content of a message (visual or spoken) but also its emotional content. For instance Mrakotsky et al. found that children with a prognosis for depression are especially good in recognizing facial expressions of negative emotions.

    For the auditory domain Belin et al. could identify a brain region -using functional magnetic resonance imaging-, the "superior temporal sulcus (STS)" that is selectively responsive to human voices. It would be interesting to see if a similar sensitivity to the "tone of a voice" and its emotional content can be established as well.


  5. Editor's Note Bookmark and Share

    In this issue we have several contributions that were presented at the Santa Fe Institute Business Network for Complex Systems Research - Meeting "Tutorial on Complexity and Agent Based Modeling" held on January 24-25, 2000 in Tokyo, Japan. The meeting was hosted by Motorola Japan Ltd. We have a short video clip (requires player) from the welcome address by its president, Dr.Isamu Kuru.

    In ComDig 2000.2.9 we had an review of Tom Ray's work. His talk started off with the observation that it always seem to take a while before the full potential of an innovation is recognized and that it is quite common to transfer familiar structures into a new environment (see video clip). The first movies were basically recorded theater plays. Today's cyberspace is often a mere copy of the physical, three-dimensional world where one has to walk through doors and streets to reach a distant point. Avatars look like humans and shake virtual hands just as in "real life". He pointed out that CyberSpace has many dimensions; spatial distances loose their meaning and will be replaced by new metrics such as the time it takes to send a message between two points. Details of his talk can be found on his Tierra web-site.

    In ComDig 2000.2.10 we had an abstract by Makoto Mizuno's talk on agent based models of the Japanese pop ("j-pop") market. He now submitted a more extensive summary in English and in Japanese. We also have a short video clip of his presentation.


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