Class notes

Notes lectures Innovation, Behaviour, Emergence and Markets (IBEM) (AM_1052)

0 purchase

Course
Innovation, Behaviour, Emergence and Markets (AM_1052)

Institution
Vrije Universiteit Amsterdam (VU)

These are notes from all the lectures given for the course Innovation, Behaviour, Emergence and Markets (IBEM). This is also exam material.

[Show more]

Preview 2 out of 13 pages

View example

Uploaded on June 8, 2024
Number of pages 13
Written in 2023/2024
Type Class notes
Professor(s) Trust saidi
Contains All classes

innovation
behaviour
emergence
markets
complex adaptive systems
adaptivity
systems
equality

Institution
Vrije Universiteit Amsterdam (VU)
Education
Management, Policy-Analysis and Entrepreneurship in Health and Life Science
Course
Innovation, Behaviour, Emergence and Markets (AM_1052)

yaralangeveld

Member since 7 year 332 documents sold

$5.39

Add to cart

Add to wishlist

100% satisfaction guarantee
Immediately available after payment
Both online and in PDF
No strings attached

Lecture 1 - 08/01 - Innovation, Behaviour, Emergence and Markets
IBEM is based on solid transdisciplinary science and it is anchored on Complex Adaptive
Systems (CAS) theory → theory of CAS not only combines, but merges models and views from
different scientific disciplines, such as game theory, psychology, network theory and sociology.
Complex Adaptive System (CAS) = a group of semi-autonomous agents who interact in
interdependent ways to produce system-wide patterns, such that those patterns
then influence the behaviour of the agents (picture right).
→ dynamic and interactive system composed of multiple agents or components that
adapt to their environment based on local interactions → these systems are
characterised by non-linear dynamics, emergence and the capacity for
self-organisation → concept of equilibrium points becomes particularly interesting.
→ informs our understanding of how some of the patterns emerge as dominant
over others and how other patterns may be diminished or eradicated.
→ system in which many interdependent elements or agents interact, leading to emergent
outcomes that are often difficult (or impossible) to predict simply by looking at the individual
interactions → complex; difficult to understand or difficult to predict -> dynamic; moving,
changing -> adaptive; changing to adapt to an environment or condition.
→ elements CAS:
- Consists of several heterogeneous agents, that each make decisions about how to behave
→ the most important dimension is that those decisions will evolve over time.
- Agents interact with each other, which leads to…
- …emergence, in a real way, the whole becomes greater than the sum of the parts → key
issue is that you cannot really understand the whole system simply by looking at
individual parts.
→ example: ant colony, where each ant has a decision role (foraging, midden work), and also
interacts with other ants → a lot of that is local interaction → what
emerges from their behaviour is the ant colony.
→ basic features: heterogeneous agents, interaction and an emergent
global system → are consistent across domains (picture left).
System = collection of interconnected and interdependent elements or
agents that exhibit complex behaviour through adaptive processes → are
characterised by their dynamic nature, non-linear interactions and the
ability to self-organise in response to changes in their environment → types of systems: simple,
complicated, non-linear (chaotic), CAS (non-linear and CAS are dynamic).
Reductionism = understand a system completely if you know the properties of all its things →
CAS is partly unpredictable, shows emergence, and is irrational, even if you know all things.
→ simple systems: well-ordered, predictable cause-effect - relations are simple and stable -
input-output relations are simple - things are simple and few - easy to repair - structure and
functions are clear → FEX. a bicycle is easy to understand.
→ complicated systems: things are many and can be complex - relations are manyfold and diverse
- difficult to design and repair (need experts) - structures and functions are partly hidden -
engineered → FEX. an airplane is overwhelming for people who are not trained to understand it.
→ non-linear (complex) systems: continuously changing - unpredictable - many things, but no
thinking or adaptation - input-output relations are unclear - butterfly effect = small change may
cause a large effect - difficult to control and change - non-linear (no clear and stable cause and
effect relations) → FEX. the weather continuously changes and birds’ coordination (not a single

, boss, but distributed control, no script prescribing actions of the flock, simple rules; avoid hitting
each other, align flight to match neighbours and fly an average distance from each other).
→ CAS: many things (actors/agents), connected in a network (building blocks) - adaptive
(capacity to change due to feedback or memory) - details are unpredictable, but general laws
exist (open systems that continuously interacts with its environment) - constant change (no fixed
equilibrium) (show emergence, connectivity creates new property) - has multiple equilibria and
changing patterns (constant input of energy to maintain the organisation of the system, which is
essential for emergence).
Characteristics CAS: leaderless - emergent patterns - self-organising (pattern emerges as a result
of the agents following simple rules without external control or a leader) - feedback loops
(circular process in which the systems’ output is fed back to the input) - adaptive (to changes) -
chaotic (small changes can generate large changes in the systems’ outcome) - stochastic
(governed by chance, randomness in movements and interactions).
How do CAS react to change? → sometimes a small change may have a large effect OR the system
is resistant (resilient) against a disturbance → evolution and specialisation of the actors.
CAS examples: ecosystem - healthcare system - city - organisations (like hospitals) - markets
(business ecosystem) - artificial systems - gut (digestive system).
Visible properties CAS: diversity/specialisation of actors -> actors change behaviour (genes and
learning) -> flows (food chains, info, water) -> groups of actors (animals aggregate and cooperate)
-> building blocks (things that are successful can be copied, combined and re-used, a business
model, antibiotic, DNA sequences, vaccine) -> boundaries that are permeable -> adaptation and
behavioural changes (learning) -> tags = visible code to easily identify an actor -> struggle and
survival (competition between actors) -> reward mechanisms (determine actor behaviour) ->
strategies (actors think how they can do better/survive).
→ adaption + rewards + strategies = selection (failure of the weakest, success of the fittest),
inequality (unfair, rich and poor), and continuous change (a CAS is unpredictable).
Example hospital: doctors specialise - different professions (tags) - competition in private
hospitals to provide better services compared to other institutions - reward mechanisms.
Invisible properties CAS: CAS have several equilibrium points -> can switch between these by
passing through a transition point -> perturbations (big/small events) may cause a jump to a new
equilibrium point (revolution → FEX. new organisational structure, collapse of ecosystem,
epidemic disease) -> cause-effect relations are non-linear (cannot calculate the effect of a
change, even if you know everything about the actors, no simple cause-effect relation).
→ non-linearity = a small change may cause no effect (stability), unexpected effect (emergence)
or a large effect (across a transition point) → a large change may cause no effect (resilience,
stability, adaptation), a minor local effect, unexpected effect (emergence) or a large effect (across
a transition point, leading to a new equilibrium) → FEX. a small nucleotide change in DNA results
in the very rare Kleefstra syndrome.
Hidden order:
- Internal models: an actor’s model of its environment in a form that describes how to
behave → to be adaptive you need something that remembers what you did and how it
worked → internal model is the carrier of adaptivity → can change by coincidence
(mutation), design (programming) and learning from experiences → helps its owner to
survive, because the actor reacts better next time (learning) → vary from very simple to
very complicated → social rules in your head (how to behave and what is normal?).
- FEX. the brain (behaviour), DNA, text (recipe, business plan), software/algorithm
(AI) → example: medical protocol -> if symptom 1, then treatment 1.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller yaralangeveld. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $5.39. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

67479 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling

Class notes

Notes lectures Innovation, Behaviour, Emergence and Markets (IBEM) (AM_1052)

Document information

Subjects

Written for

Seller

Reviews received

Content preview