From: John Conover <john@email.johncon.com>
Subject: forwarded message from Valdis E. Krebs
Date: Wed, 5 Jun 1996 21:25:31 -0700
Attached is one, of many, recent postings to the Learning Organization conferences concerning what is now called "informal leaders." Strangely, the concept is not new. In the late 60's, (when NASA was an efficient organization-if you can remember back that far,) they were doing studies into just that. They concluded that the "informal leaders," (what they called the "inner face," of the organization,) was was really what made an organization work, not the formal organizational structure, nor the formal leadership of the organization, nor the formal decision process of the organization. Out of these studies came what was to be called "group advice, one man decisions," which was an organizational paradigm for NASA until the mid 70's. (It was the methodology used to handle the Apollo 13 crisis-as portrayed in the recent movie-and the likes of Gene Krantz, the Flight Director during the catastrophe was an ardent supporter.) The term in the attached, "... concept of 'increasing returns' ..." is interesting, since it is a term from complexity theory, generally used in relation to economic issues. (Keynesian, Post-Keynesian, Classical, and Neo-Classical economics do not recognize it, and, indeed, even denied its existence. However, starting in the late 1980's, it became the central paradigm to contemporary economic theory where fractal analysis and cellular automata-technically called non-linear dynamical systems theory-are used to model macro-economic phenomena.) Additionally, it is interesting that the term is used in relation to organizational "connections" which would tend to indicate that the "informal leaders" or the "inner face" of the organization could be modeled using cellular automata, which is, in addition, kind of interesting since the only reliable analytical technique we have to model interpersonal and social relationships uses cellular automata and game-theoretic techniques. See the works of Robert Axelrod and Stephanie Forrest for details. I think they can be found at the Santa Fe Institute, http://www.santafe.edu, and have proposed using genetic algorithms in addition to CA/GT techniques to simulate dynamical outcomes of large systems where game strategies are not constant-ie., the game rules have to be developed, or learned, "on the fly." I think Forrest's C source code is available on ftp.santafe.edu that she used to model a "society" with "massively" many concurrent players, (or "citizens,") each player playing the game-theoretic iterated "prisoner's dilemma," (ie., classic multi-player zero-sum iterated game.) The results of the simulation are astonishing, to say the least. Most players eventually "discover" and adopt a cooperation strategy in relation to the "society" as a whole-which is a counter-intuitive outcome in relation to game-theoretic analysis, where it can be shown that the only "rational" strategy is non-cooperative. This was a major issue with John Von Neumann, (who founded game theory,) and considered it enigmatic that game-theoretic means predicted that the only rational outcome of humanity was self destruction. (He made the comment, some time around 1954, that this was why we are alone in the universe, since the "prisoner's dilemma" has no solution, all intelligent beings would eventually destroy their selves.) John References: "John von Neumann and the Origins of Modern Computing," William Aspray, MIT Press, Cambridge, Massachusetts, 1990. "Prisoner's Dilemma," William Poundstone, Doubleday, New York, New York, 1992. "Handbook of Genetic Algorithms," Lawrence Davis, Van Nostrand Reinhold, New York, New York, 1991. "Complexity," M. Mitchell Waldrop, Simon & Schuster, New York, New York, 1992. "Games and Decisions," R. Duncan Luce and Howard Raiffa, John Wiley & Sons, New York, New York, 1957. And a great www site for the history and introduction of game theory: http://william-king.www.drexel.edu/top/class/histf.html -- John Conover, john@email.johncon.com, http://www.johncon.com/