Overview

In epistemology, and more specifically, the sociology of knowledge, reflexivity refers to circular relationships between cause and effect, especially as embedded in human belief structures. A reflexive relationship is multi-directional when the causes and the effects affect the reflexive agent in a layered or complex sociological relationship. The complexity of this relationship can be furthered when epistemology includes religion.

Within sociology more broadly—the field of origin—reflexivity means an act of self-reference where existence engenders examination, by which the thinking action "bends back on", refers to, and affects the entity instigating the action or examination. It commonly refers to the capacity of an agent to recognise forces of socialisation and alter their place in the social structure. A low level of reflexivity would result in individuals shaped largely by their environment (or "society").

A high level of social reflexivity would be defined by individuals shaping their own norms, tastes, politics, desires, and so on. This is similar to the notion of autonomy. (See also structure and agency and social mobility.)

Within economics, reflexivity refers to the self-reinforcing effect of market sentiment, whereby rising prices attract buyers whose actions drive prices higher still until the process becomes unsustainable. This is an instance of a positive feedback loop. The same process can operate in reverse leading to a catastrophic collapse in prices.

Overview

In social theory, reflexivity may occur when theories in a discipline should apply equally to the discipline itself; for example, in the case that the theories of knowledge construction in the field of sociology of scientific knowledge should apply equally to knowledge construction by sociology of scientific knowledge practitioners, or when the subject matter of a discipline should apply equally to the individual practitioners of that discipline (e.g., when psychological theory should explain the psychological processes of psychologists).

More broadly, reflexivity is considered to occur when the observations of observers in the social system affect the very situations they are observing, or when theory being formulated is disseminated to and affects the behaviour of the individuals or systems the theory is meant to be objectively modelling. Thus, for example, an anthropologist living in an isolated village may affect the village and the behaviour of its citizens under study. The observations are not independent of the participation of the observer.

Reflexivity is, therefore, a methodological issue in the social sciences analogous to the observer effect. Within that part of recent sociology of science that has been called the strong programme, reflexivity is suggested as a methodological norm or principle, meaning that a full theoretical account of the social construction of, say, scientific, religious or ethical knowledge systems, should itself be explainable by the same principles and methods as used for accounting for these other knowledge systems.

This points to a general feature of naturalised epistemologies, that such theories of knowledge allow for specific fields of research to elucidate other fields as part of an overall self-reflective process: any particular field of research occupied with aspects of knowledge processes in general (e.g., history of science, cognitive science, sociology of science, psychology of perception, semiotics, logic, neuroscience) may reflexively study other such fields yielding to an overall improved reflection on the conditions for creating knowledge.

Reflexivity includes both a subjective process of self-consciousness inquiry and the study of social behaviour with reference to theories about social relationships.

History

The principle of reflexivity was perhaps first enunciated by the sociologists William I. Thomas and Dorothy Swaine Thomas, in their 1928 book The child in America: "If men define situations as real, they are real in their consequences". The theory was later termed the "Thomas theorem".

Sociologist Robert K. Merton (1948, 1949) built on the Thomas principle to define the notion of a self-fulfilling prophecy: that once a prediction or prophecy is made, actors may accommodate their behaviours and actions so that a statement that would have been false becomes true or, conversely, a statement that would have been true becomes false - as a consequence of the prediction or prophecy being made. The prophecy has a constitutive impact on the outcome or result, changing the outcome from what would otherwise have happened.

Reflexivity was taken up as an issue in science in general by Karl Popper (1957), who in his book The Poverty of Historicism highlighted the influence of a prediction upon the event predicted, calling this the 'Oedipus effect' in reference to the Greek tale in which the sequence of events fulfilling the Oracle's prophecy is greatly influenced by the prophecy itself.

Popper initially considered such self-fulfilling prophecy a distinguishing feature of social science, but later came to see that in the natural sciences, particularly biology and even molecular biology, something equivalent to expectation comes into play and can act to bring about that which has been expected. It was also taken up by Ernest Nagel (1961).

Reflexivity presents a problem for science because if a prediction can lead to changes in the system that the prediction is made in relation to, it becomes difficult to assess scientific hypotheses by comparing the predictions they entail with the events that actually occur. The problem is even more difficult in the social sciences.

In economics

Economic philosopher George Soros, influenced by ideas put forward by his tutor, Karl Popper (1957), has been an active promoter of the relevance of reflexivity to economics, first propounding it publicly in his 1987 book The alchemy of finance. He regards his insights into market behaviour from applying the principle as a major factor in the success of his financial career.

Reflexivity is inconsistent with general equilibrium theory, which stipulates that markets move towards equilibrium and that non-equilibrium fluctuations are merely random noise that will soon be corrected. In equilibrium theory, prices in the long run at equilibrium reflect the underlying economic fundamentals, which are unaffected by prices. Reflexivity asserts that prices do in fact influence the fundamentals and that these newly influenced sets of fundamentals then proceed to change expectations, thus influencing prices; the process continues in a self-reinforcing pattern.

Because the pattern is self-reinforcing, markets tend towards disequilibrium. Sooner or later they reach a point where the sentiment is reversed and negative expectations become self-reinforcing in the downward direction, thereby explaining the familiar pattern of boom and bust cycles. An example Soros cites is the procyclical nature of lending, that is, the willingness of banks to ease lending standards for real estate loans when prices are rising, then raising standards when real estate prices are falling, reinforcing the boom and bust cycle.

He further suggests that property price inflation is essentially a reflexive phenomenon: house prices are influenced by the sums that banks are prepared to advance for their purchase, and these sums are determined by the banks' estimation of the prices that the property would command.

Soros has often claimed that his grasp of the principle of reflexivity is what has given him his "edge" and that it is the major factor contributing to his successes as a trader. For several decades there was little sign of the principle being accepted in mainstream economic circles, but there has been an increase of interest following the crash of 2008, with academic journals, economists, and investors discussing his theories.

In sociology

Margaret Archer has written extensively on laypeople's reflexivity. For her, human reflexivity is a mediating mechanism between structural properties, or the individual's social context, and action, or the individual's ultimate concerns. Reflexive activity, according to Archer, increasingly takes the place of habitual action in late modernity since routine forms prove ineffective in dealing with the complexity of modern life trajectories.

While Archer emphasises the agentic aspect of reflexivity, reflexive orientations can themselves be seen as being "socially and temporally embedded". For example, Elster points out that reflexivity cannot be understood without taking into account the fact that it draws on background configurations (e.g., shared meanings, as well as past social engagement and lived experiences of the social world) to be operative.