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Agent Based Simulation of Trust Dynamics in Dependence Networks

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Abstract

Online communities can be seen as service systems, in which actors interact providing, requesting or sharing resources for [co-]creating value. On the basis of the resources needed/owned for achieving a goal it is possible to draw several dependence links among the actors (agents), creating a dependence network. On the other hand, since trust is the key coordinating mechanism in community based organizations, by analyzing the dynamics of trust in dependence networks is possible to better understand the behavior of this kind of service system, viewed as a complex social systems. In this paper we develop an architecture of cognitive agents and of the environment in which they act and interact. This architecture will be the basis for implementing a platform for agent based simulation that serves as a tool for investigating the dynamics of information sharing, collaboration, and collective action within different service systems.

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This special issue originated with the 1996 Organization Science Winter Conference (OSWC), which set out to explore the implications of the science of complexity for the field of organization studies. Following the OSWC, a formal program organized by the Organization Science section of INFORMS took place in Atlanta. The vast potential for complexity theory to inform and transform research in organization studies became evident from the discussions of 22 papers that were presented at that meeting. In response to the call for papers issued after the Atlanta meeting, 56 papers were submitted to Organization Science, of which seven make up this issue. Interest in complexity has grown dramatically since the 1996 OSWC first explored this idea. The purpose of this special issue is not to declare that a new era in organization studies and strategic management is at hand, but to explore the boundaries and links between the science of complexity—with its origin in evolution and biology—and the field of strategy and organization. The issue explores the implications of complexity research for organization studies in the context of new ways of modeling dynamic, nonlinear complex systems for advancing theoretical and empirical research in organization studies (e.g., theorizing within coevolutionary frameworks, decomposition of nested phenomena, multidirectional causalities).
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This paper treats organizations as adaptive systems that have to match the complexity of their environments. The nature of this complexity is analyzed by linking an institutional Information-Space (I-Space) framework to the work of complexity theorists. The I-Space framework identifies the codification, abstraction, and diffusion of information as cultural attributes. Codification involves the assignment of data to categories, thus giving them form. Abstraction involves a reduction in the number of categories to which data needs to be assigned for a phenomenon to be apprehended. Information is diffused through populations of data-processing agents, thus constituting the diffusion dimension. Complexity theorists have identified the stability and structure of algorithmic information complexity in a way that corresponds to levels of codification and abstraction. Their identification of system parts and the richness of cross-coupling draws attention to the fabric of information diffusion. We discuss two modes of adaptation to complex environments: complexity reduction and complexity absorption. Complexity reduction entails getting to understand the complexity and acting on it directly, including attempts at environmental enactment. Complexity absorption entails creating options and risk-hedging strategies, often through alliances. The analysis, and its practical utility, is illustrated with reference to China, the world's largest social system. Historical factors have shaped the nature of complexity in China, giving it very different characteristics than those typical of Western industrial countries. Its organizations and other social units have correspondingly handled this complexity through a strategy of absorption rather than the reduction strategy characteristic of Western societies. Western firms operating in China therefore face a choice between maintaining their norms of complexity reduction or adopting a strategy of complexity absorption that is more consistent with Chinese culture. The specifics of these policy alternatives are explored, together with their advantages and disadvantages. The paper concludes with the outlines of a possible agenda for future research, focusing on the investigation of complexity-handling modes and the contingencies which may bear upon the choice between them.
Article
Complex organizations exhibit surprising, nonlinear behavior. Although organization scientists have studied complex organizations for many years, a developing set of conceptual and computational tools makes possible new approaches to modeling nonlinear interactions within and between organizations. Complex adaptive system models represent a genuinely new way of simplifying the complex. They are characterized by four key elements: agents with schemata, self-organizing networks sustained by importing energy, coevolution to the edge of chaos, and system evolution based on recombination. New types of models that incorporate these elements will push organization science forward by merging empirical observation with computational agent-based simulation. Applying complex adaptive systems models to strategic management leads to an emphasis on building systems that can rapidly evolve effective adaptive solutions. Strategic direction of complex organizations consists of establishing and modifying environments within which effective, improvised, self-organized solutions can evolve. Managers influence strategic behavior by altering the fitness landscape for local agents and reconfiguring the organizational architecture within which agents adapt.
Article
In this paper, two different views of sociality, one based upon interferences, and the other based upon complementarity, or interdependence, are confronted. The latter is shown to present a number of theoretical advantages over the former, allowing for an account of different types of social actions— influencing, exchange, cooperation—and of how these emerge from structural social conditions. A formal model of dependence relations is presented, and an algorithm for calculating the dependence networks and situations in a multi‐agent context is briefly shown. A simulator of dependence relations, which edits a set of agents (in terms of their goals, actions, and plans) and applies the algorithm to calculate their dependence relations relative to any given goal, is described, and its applications are discussed. Some elementary simulations are exemplified in order to illustrate the experimental application of the simulator in a two‐agent context. Future expansions of the simulator are finally discussed.
Article
Service systems are value-co-creation configurations of people, technology, value propositionsconnecting internal and external service systems, and shared information (e.g., language, laws, measures, and methods). Service science is the study of service systems, aiming to create a basis for systematicservice innovation. Service science combines organization and human understanding with business andtechnological understanding to categorize and explain the many types of service systems that exist as wellas how service systems interact and evolve to co-create value. The goal is to apply scientific understandingto advance our ability to design, improve, and scale service systems. To make progress, we think servicedominantlogic provides just the right perspective, vocabulary, and assumptions on which to build a theory ofservice systems, their configurations, and their modes of interaction. Simply put, service-dominant logicmay be the philosophical foundation of service science, and the service system may be its basic theoreticalconstruct. KeywordsService science-Service systems-Service-dominant logic
Article
This paper applies the two-party dependence theory (Castelfranchi, Cesta and Miceli, 1992, in Y. Demazeau and E. Werner (Eds.) Decentralized AI-3, Elsevier, North Holland) to modelling multiagent and group dependence. These have theoretical potentialities for the study of emerging groups and collective structures, and more generally for understanding social and organisational complexity, and practical utility for both social-organisational and agent systems purposes. In the paper, the dependence theory is extended to describe multiagent links, with a special reference to group and collective phenomena, and is proposed as a framework for the study of emerging social structures, such as groups and collectives. In order to do so, we propose to extend the notion of dependence networks (applied to a single agent) to dependence graphs (applied to an agency). In its present version, the dependence theory is argued to provide (a) a theoretical instrument for the study of social complexity, and (b) a computational system for managing the negotiation process in competitive contexts and for monitoring complexity in organisational and other cooperative contexts.
Article
Recent conceptualizations of trends in the structure of U.S. industry have focused on the relative importance of markets, hierarchies, and hybrid intermediate forms. This paper seeks to advance the discussion by distinguishing three ideal-typical forms of organization and their corresponding key coordination mechanism: market/price, hierarchy/authority, and community/trust. Different institutions combine the three forms/mechanisms in different proportions. Economic and organizational theory have shown that compared to trust, price and authority are relatively ineffective mechanisms for dealing with assets that are based on knowledge. As knowledge becomes increasingly important in our economy, we should therefore expect high-trust institutional forms to proliferate. A review of trends in employment relations, interdivisional relations, and inter-firm relations finds evidence suggesting that the effect of growing knowledge-intensity may indeed be such a trend towards greater reliance on trust. There is also reason to believe that the form of trust most effective in this context is of a distinctively modern kind - "reflective trust" - as opposed to a traditionalistic, blind trust. Such a trend to reflective trust appears to threaten the privileges of currently dominant social actors, and these actors' resistance, in combination with the complex interdependencies between price, authority, and trust mechanisms, imparts a halting character to the trend. But the momentum of this trend nevertheless appears to be self-reinforcing, which suggests that it may ultimately come to challenge the foundations of our capitalist form of society while simultaneously creating the foundations of a new, post-capitalist form.
Article
Continuing his exploration of the organization of complexity and the science of design, this new edition of Herbert Simon's classic work on artificial intelligence adds a chapter that sorts out the current themes and tools -- chaos, adaptive systems, genetic algorithms -- for analyzing complexity and complex systems. There are updates throughout the book as well. These take into account important advances in cognitive psychology and the science of design while confirming and extending the book's basic thesis: that a physical symbol system has the necessary and sufficient means for intelligent action. The chapter "Economic Reality" has also been revised to reflect a change in emphasis in Simon's thinking about the respective roles of organizations and markets in economic systems.
Simulating multi-agent interdependencies. a two-way approach to the micro-macro Microsimulation and the Social Science
  • R Conte
  • C Castelfranchi
Dependence Graphs: Dependence Within and Between Groups. Computational Mathematical Organization Theory
  • R Conte
  • J S Sichman
Conte, R., Sichman, J.S.: Dependence Graphs: Dependence Within and Between Groups. Computational Mathematical Organization Theory. 8, 87–112 (2002).
A design theory for e-Service environments: the interoperability challenge
  • P Spagnoletti
  • S Za
Being trusted in a social network: Trust as relational capital
  • C Castelfranchi
  • R Falcone
  • F Marzo
Castelfranchi, C., Falcone, R., Marzo, F.: Being trusted in a social network: Trust as relational capital. In: Stølen, K., Winsborough, W.H., Martinelli, F., and Massacci, F. (eds.) Trust Management -Lecture Notes in Computer Science Volume 3986. pp. 19-32 (2006).