Science

"Perceptual reality is different for different species. In certain species it is a mode of observation, so what we call scientific fact is actually not ultimate truth, it is perceptual experience, and it's a mode of observation."

"It is a trite but true observation, that examples work more forcibly on the mind than precepts."

"It has become extremely questionable whether, in the flux of life, it is a genuinely worthwhile intellectual problem to seek to discover fixed and immutable ideas or absolutes. It is a more worthy intellectual task perhaps to learn to think dynamically and relationally rather than statically... When the empirical investigator glories in his refusal to go beyond the specialized observation dictated by the traditions of his discipline, be they ever so inclusive, he is making a virtue out of a defense mechanism which insures him against questioning his presuppositions."

"If a tree falls in a forest, and no-one is around to hear it, does it make a noise?"

"Whether if soul did not exist time would exist or not, is a question that may fairly be asked; for if there cannot be someone to count there cannot be anything that can be counted, so that evidently there cannot be number; for number is either what has been, or what can be, counted."

"Nothing has such power to broaden the mind as the ability to investigate systematically and truly all that comes under thy observation in life."

"A pinch of observation is worth a mountain of hypothesis."

"It seems to me, when I see nature, that I see it ready made, completely written — but then, try to do it! All this proves that one must think of nothing but them [impressions]; it is by dint of observation and reflection that one makes discoveries."

"The great extension of our experience in recent years has brought light to the insufficiency of our simple mechanical conceptions and, as a consequence, has shaken the foundation on which the customary interpretation of observation was based."

"Yeah. Yeah, that's right. Pregnant woman. Gunned her down. Bang. And y'know what? You watched me. You coulda changed the gun into steam or the bullets into mercury or the bottle into god damn snowflakes! You coulda teleported either of us to goddamn Australia...but you didn't lift a finger! You don't really give a damn about human beings. I've watched you. You never cared about what's her name, Janey Slater, even before you ditched her. Soon you won't be interested in Sally Jupiter's little girl, either. You're driftin' outta touch, Doc. You're turnin' into a flake. God help us all."

"Everything is literally entangled, it can all be communicated with and affected 'at a distance' because there is no distance, only a simulation of apparent separation which our limited consciousness feeds us second by second at 11 bits. The 'telepathy' which brings people together is no more or less supernatural or unlikely than the 'telepathy' which brings two of your fingers together when you think about it. Patience, participation and constant close observation of what's going on, on the inside and on the outside will soon make you a fine sorcerer, if that's what you want to be."

"The amazing thing is that chaotic systems don't always stay chaotic, Ben said, leaning on the gate. Sometimes they spontaneously reorganize themselves into an orderly structure. They suddenly become less chaotic?" I said, wishing that would happen at HiTek. No, that's the thing. They become more and more chaotic until they reach some sort of chaotic critical mass. When that happens, they spontaneously reorganize themselves at a higher equilibrium level. It's called self-organized criticality."

"Falling between order and chaos, the moment of complexity is the point at which self-organizing systems emerge to create new patterns of coherence and structures of behaviour."

"Chaos is lawless behavior governed entirely by law.”"

"Saying “the mathematics of uncertainty” is like saying “the chastity of sex”—what is mathematized is no longer uncertain, and vice versa."

"Let us try to represent the figure formed by these two curves and their intersections in infinite number, each corresponding to a doubly asymptotic solution, these intersections form a kind of mesh, of fabric, of infinitely tight network; each of the two curves must never intersect itself, but it must fold back on itself in a very complex way in order to cross an infinite number of times all the meshes of the network. On will be struck by the complexity of this figure, which I do not even try to draw. Nothing is more likely to give us an idea of the complexity of the three-body problem and in general of all the problems of dynamics where there is no uniform integral and where the Bohlin series are divergent."

"The fluttering of a butterfly’s wing in Rio de Janeiro, amplified by atmospheric currents, could cause a tornado in Texas two weeks later."

"Order is not universal. In fact, many chaologists and physicists posit that universal laws are more flexible than first realized, and less rigid—operating in spurts, jumps, and leaps, instead of like clockwork. Chaos prevails over rules and systems because it has the freedom of infinite complexity over the known, unknown, and the unknowable."

"It is time to employ fractal geometry and its associated subjects of chaos and nonlinear dynamics to study systems engineering methodology (SEM). Systematic codification of the former is barely 15 years old, while codification of the latter began 45 years ago... Fractal geometry and chaos theory can convey a new level of understanding to systems engineering and make it more effective"

"What, after all, is a better example of chaos theory than the harassment of a street vendor in Tunisia leading to a civil war in Syria?"

"Without chaos there would be no creation, no structure and no existence. After all, order is merely the repetition of patterns; chaos is the process that establishes those patterns. Without this creative self-organizing force, the universe would be devoid of biological life, the birth of stars and galaxies—everything we have come to know."

"Mathematicians believed that prediction was just a function of keeping track of things. If you knew enough, you could predict anything… Chaos theory throws it right out the window because in fact there are great categories of phenomena that are inherently unpredictable."

"For want of a nail the shoe was lost; For want of a shoe the horse was lost; For want of a horse the battle was lost; For the failure of battle the kingdom was lost— All for the want of a horse-shoe nail."

"It used to be thought that the events that changed the world were things like big bombs, maniac politicians, huge earthquakes, or vast population movements, but it has now been realized that this is a very old-fashioned view held by people totally out of touch with modern thought. The things that really change the world, according to Chaos theory, are the tiny things. A butterfly flaps its wings in the Amazonian jungle, and subsequently a storm ravages half of Europe. Somewhere in Adam's sleeping head, a butterfly had emerged."

"Chaotic theory is mathematically based on non-linear propositions, "meaning that they expressed relationships that were not strictly proportional. Linear relationships can be captured with a straight line on a graph""

"Relativity eliminated the Newtonian illusion of absolute space and time; quantum theory eliminated the Newtonian dream of controllable measurement process; chaos eliminates the Laplacian fantasy of deterministic predictability."

"In the literature of problem solving, the topic I am now taking up is called "problem representation." In the past 30 years, a great deal has been learned about how people solve problems by searching selectively through a problem space defined by a particular problem representation. Much less has been learned about how people acquire a representation for dealing with a new problem—one they haven't previously encountered."

"If (...) we accept the proposition that both the knowledge and the computational power of the decision maker are severely limited, then we must distinguish between the real world and the actor’s perception of it and reasoning about it."

"Information impactedness is a derivative condition that arises mainly because of uncertainty and opportunism, though bounded rationality is involved as well. It exists when true underlying circumstances relevant to the transaction, or related set of transactions, are known to one or more parties but cannot be costlessly discerned by or displayed for others."

"A comparative examination of the models of adaptive behavior employed in psychology (e.g., learning theories), and of the models of rational behavior employed in economics, shows that in almost all respects the latter postulate a much greater complexity in the choice mechanisms, and a much larger capacity in the organism for obtaining information and performing computations, than do the former. Moreover, in the limited range of situations where the predictions of the two theories have been compared (...), the learning theories appear to account for the observed behavior rather better than do the theories of rational behavior."

"Both from these scanty data and from an examination of the postulates of the economic models it appears probable that, however adaptive the behavior of organisms in learning and choice situations, this adaptiveness falls far short of the ideal of ‘maximizing’ postulated in economic theory. Evidently, organisms adapt well enough to‘satisfice’; theydo not, in general, ‘optimize’."

"The first consequence of the principle of bounded rationality is that the intended rationality of an actor requires him to construct a simplified model of the real situation in order to deal with it. He behaves rationally with respect to this model, and such behavior is not even approximately optimal with respect to the real world. To predict his behavior we must understand the way in which this simplified model is constructed, and its construction will certainly be related to his psychological properties as a perceiving, thinking, and learning animal."

"In Administrative Behavior, bounded rationality is largely characterized as a residual category — rationality is bounded when it falls short of omniscience. And the failures of omniscience are largely failures of knowing all the alternatives, uncertainty about relevant exogenous events, and inability to calculate consequences. There was needed a more positive and formal characterization of the mechanisms of choice under conditions of bounded rationality... Two concepts are central to the characterization: search and satisficing."

"In a fundamental sense, Alchian's theory of economic organizations is different from those of Coase or Simon. He disavows an explicit model of individual choice... and... offers a system-level explanation of organizational emergence, structure, and survival that is largely independent of decision making at the micro level... Yet it is precisely this independence of a distinct model of choice that ultimately renders it compatible with the individualistic theories of both Coase and Simon...."

"Bounded rationality means that people make quite reasonable decisions based on the information they have. But they don't have perfect information, especially about more distant parts of the system. [...] We don't even interpret perfectly the imperfect information that we do have, say behavioral scientists. [...] Which is to say, we don't even make decisions that optimize our own individual good, much less the good of the system as a whole."

"Around 1958, I became aware of H.A. Simon's seminal papers on bounded rationality and was immediately convinced by his arguments. I tried to construct a theory of boundedly rational multi-goal decision making. Together with Heinz Sauermann, I worked out an "aspiration adaptation theory of the firm" which was published as a journal article in 1962... More and more I came to the conclusion that purely speculative approaches like that of our paper of 1962 are of limited value. The structure of boundedly rational economic behavior cannot be invented in the armchair, it must be explored experimentally."

"Two types of conventions [ in organizational settings] may be distinguished here: (a) conventional rules of behavior demonstrated in the classroom mental experience (first part of the story) and (b) conventional representation of the world revealed in the following discussions with ‘‘experienced” friends (second part)."

"Simon’s conventionalism leads to a decision paradigm, according to which understanding problems of coordination is impossible without taking into consideration individual cognitive limits and social representations of reality."

"The principle of bounded rationality [is] the capacity of the human mind for formulating and solving complex problems is very small compared with the size of the problems whose solution is required for objectively rational behavior in the real world — or even for a reasonable approximation to such objective rationality."

"Models of bounded rationality describe how a judgement or decision is reached (that is, the heuristic processes or proximal mechanisms) rather than merely the outcome of the decision, and they describe the class of environments in which these heuristics will succeed or fail."

"One is forced to assume that ordinary people have the computational capabilities and statistical software of econometricians."

"Broadly stated, the task is to replace the global rationality of economic man with a kind of rational behavior that is compatible with the access to information and the computational capacities that are actually possessed by organisms, including man, in the kinds of environments in which such organisms exist."

"# Emergent structuring, whereby participants discover or adopt certain similar strategies within bounded rationality and situations with certain opportunity structures and incentive structures. Social network and ecological properties result in relatively well-defined aggregate performance characteristics..."

"The term “bounded rationality” was coined in the 1950s by Herbert A. Simon."

"Although contributions of many writers have helped the rise of behavioral economics including psychologists Kahneman and Tversky, I regard the works of George Katona and Herbert Simon instrumental in its rise. While the works of Katona and his colleagues at Michigan University led to the use of survey method in economics and its utilization in measuring the impact of consumer expectations on macroeconomic activity, the work of Simon at Carnegie Tech. (a tremendously stimulating intellectual environment for economic theorizing then) resulted in the important theoretical foundations of behavioral economics, such as the concept of bounded rationality."

"All that most economists know about Herbert Simon is that he wrote about bounded rationality and organizational behavior."

"The type of rationality we assume in economics — perfect, logical, deductive rationality — is extremely useful in generating solutions to theoretical problems. But it demands much of human behavior — much more in fact than it can usually deliver. If we were to imagine the vast collection of decision problems economic agents might conceivably deal with as a sea or an ocean, with the easier problems on top and more complicated ones at increasing depth, then deductive rationality would describe human behavior accurately only within a few feet of the surface. For example, the game Tic-Tac-Toe is simple, and we can readily find a perfectly rational, minimax solution to it. But we do not find rational “solutions” at the depth of Checkers; and certainly not at the still modest depths of Chess and Go."

"There are two basic ways market organization is brought about... Some combination of the two is usual the case:"

"… I shall assume that the concept of ‘economic man’(...) is in need of fairly drastic revision, and shall put forth some suggestions as to the direction the revision might take."

"# Strategic structuring, informal or formal, whereby social agents, including the state, establish a rule regime regulating market access and transactions..."