Abstract
Effective institutions are key to the success of self-governing systems, yet specifying and maintaining them can be challenging, especially in large-scale, highly dynamic and competitive contexts. Political economist Elinor Ostrom has studied the conventional arrangements for sustainable natural resource management and derived from these eight design principles for self-governing institutions. One principle, nested enterprises, is straightforwardly expressed, but is arguably structural rather than functional, and so is more resistant to declarative specification; yet it also appears to be critical to the effectiveness of complex compositional systems. In this paper, we converge the ideas of holonic systems with electronic institutions, to propose a formalisation of this principle based on holonic institutions. We show how holonic institutions provide a structural framework for nested enterprises, which can be designed as composite systems of systems. This, we believe, is compatible with Ostrom’s ideas for polycentric governance of complex systems. We use a case study in energy distribution to illustrate these ideas.
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Acknowledgements
Jeremy Pitt was partially supported by the UK EPSRC Grand Challenge project The Autonomic Power System (EP/I031650/1).
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Diaconescu, A., Pitt, J. (2015). Holonic Institutions for Multi-scale Polycentric Self-governance. In: Ghose, A., Oren, N., Telang, P., Thangarajah, J. (eds) Coordination, Organizations, Institutions, and Norms in Agent Systems X. COIN 2014. Lecture Notes in Computer Science(), vol 9372. Springer, Cham. https://doi.org/10.1007/978-3-319-25420-3_2
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