The Society Model

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Modeling an Organization

In the following model, closely based on the model proposed by March, we suppose that reality can be described in terms of M binary components, representing facts about the world. Each component is represented as +1 or -1. Thus, the environment in which the organization exists is an M-component vector. We suppose initially that the components of reality are random and independent.

We further suppose that our organization or society has a population of N agents. Each agent has a particular set of beliefs about reality: For each component, an agent belief consists or a +1, a -1, or a zero representing a neutral belief. Thus, agent beliefs are represented by a set of N vectors with M components each. Initially, we assign each agent a random set of beliefs, giving equal probability to the components 1, 0, and -1.

Finally, we suppose that there is an organizational code, a collective set of beliefs that society holds as a whole. We represent the code beliefs by an M-component vector, just like an agent belief, but we suppose that the code begins with all neutral beliefs ( 0 ).

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