Uncertainty, Difficulty, and Complexity

Scott E. Page
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Scott E. Page: Center for the Study of Complex Systems, West Hall, Ann Arbor, MI 48109, USA, spage@umich.edu

Journal of Theoretical Politics, 2008, vol. 20, issue 2, 115-149

Abstract: In this article I clarify the often muddled distinctions between uncertainty, difficulty, and complexity and show that all three can enhance our understanding of institutional performance and design. To cope with uncertainty, institutions align incentives for information revelation; to handle difficult problems, institutions create incentives for diverse problem-solving approaches; and to harness complexity, institutions adjust selection criteria, rates of variation, and the level of connectedness. The distinction between complex systems and equilibrium systems also necessitates a discussion of the differences between the existence, stability, and attainment of equilibria and why, despite often being neglected, the latter two concepts are important to our understanding of institutions.

Keywords: complexity; diversity; equilibrium; institutions; uncertainty (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:sae:jothpo:v:20:y:2008:i:2:p:115-149

DOI: 10.1177/0951629807085815

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