Further, we need to distinguish between the problem itself and problem formulations. The problem itself is an abstract entity that ‘objectively’ exists given some theoretical contexts. Problems arise in two ways: out of tension between, say, some expectation, or ideal—for example, a theory—and some perceived state of affairs, such as an observation; or out of inconsistencies between two theories. These correspond roughly to Laudan’s distinction between empirical and conceptual problems (Laudan 1977). A problem can exist without being noticed or acknowledged. For instance, inconsistencies between the consequences of some theory and certain observations are not always immediately obvious. A problem formulation is thus a representation of a problem, and it can be more or less accurate. Phase-1 involves producing increasingly accurate problem formulations successively until a formulation is reached that is sufficiently precise that the process can move into phase-2.