The paper discusses aspects of a project that strives to base an understanding of what economics call “productivity” on a complexity theoretic foundation. The core thesis of this project is that productivity can best be grasped by referring to two features commonly associated with knowledge – “nonreducibility in consumption” and “time preference”. The paper in hand focuses on theoretical aspects concerning the ontological status of the observer in defining productivity alongside these features. Oriented on the Theory of Social Systems by Niklas Luhmann and methodologically drawing on Multi-Agent-Simulation, it investigates the thesis that the observer itself – circularly – can be conceptualized as a consequence of these two features.

This paper describes the basic features of the theories of complexity and reflexivity, their early history, their evolution, and reactions to date. Although complexity is a major change from previous modeling methods, it does not violate any informal fallacies or any assumptions underlying the philosophy of science. Reflexivity does. Accepting reflexivity as a legitimate movement in science will require an expansion of the conception of science which still prevails in most fields. A shift from Science One to Science Two is now being discussed. Relevance: The arguments refer to Ashby’s and von Foerster’s work in second-order cybernetics.