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Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
Economics of Social Production
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Economics of Social Production

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Professor Mindy McAdams's presentation about Chapter 4 of Yochai Benkler's 2006 book The Wealth of Nations

Professor Mindy McAdams's presentation about Chapter 4 of Yochai Benkler's 2006 book The Wealth of Nations

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  • One of the most important factor of Social Production is unit of decision making. If we take western countries the unit of decision making is 'individual', on the other hand for most of the Asian countries like India and China the unit of decision making is 'FAMILY'. Therefore the transaction costs and related phenomenon has totally different meaning in the context of Culture. Is it possible to highlight this in your presentation? However, It is an excellent presentation and needs all appreciation
    Yours sincerely,
    K.Prabhakar .
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  • this is great
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  • another good one
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  • good one
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  • Read this chapter free online here - http://www.benkler.org/wealth_of_networks/index.php?title=Sentence-sliced_Text_Chapter_4
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  • 1. The Economics of Social Production Benkler, Chapter 4 Presentation by Mindy McAdams
  • 2. Productive Behavior Is Changing <ul><li>Why do people participate in nonmarket production? </li></ul><ul><li>“ Why now, why here?” </li></ul><ul><li>Is all this sharing efficient ? </li></ul>
  • 3. What Motivates People to Produce? <ul><li>Titmuss-Arrow debates (blood banks) </li></ul><ul><li>Extrinsic reasons vs. intrinsic </li></ul><ul><li>Social reputation or face </li></ul><ul><li>Loyalty or friendship </li></ul>
  • 4. Review: Inputs Needed <ul><li>… for production of information goods today </li></ul><ul><li>Human factors: Time , creativity, wisdom, knowledge, culture </li></ul><ul><li>Computers (for production) </li></ul><ul><li>Networks (for distribution) </li></ul>
  • 5. Modularity and Granularity <ul><li>Tasks ( parts of a project) can be broken down into modules </li></ul><ul><li>The size (length of time needed) can be more or less “fine grained” </li></ul><ul><li>Granularity is a measure of module size </li></ul>
  • 6. &nbsp;
  • 7. Amazon’s “Mechanical Turk”
  • 8. Modularity and Granularity (2) <ul><li>The Web makes modular tasks easy to distribute </li></ul><ul><li>Also easy to share the outcomes (products) of a difficult task with millions of other people </li></ul><ul><ul><li>E.g., “The Memory Hole” -- information retrieved from the U.S. government via FOIA requests </li></ul></ul>
  • 9. “The Memory Hole” site
  • 10. Transaction Costs and Efficiency <ul><li>Scarce resource No. 1: Human creativity, time, and attention (rival) </li></ul><ul><li>Scarce resource No. 2: Computer and communication resources (rival) </li></ul><ul><li>Public good: Information, knowledge, culture (nonrival) </li></ul>
  • 11. Transaction Frameworks <ul><li>Markets (buy it on the open market) </li></ul><ul><li>Firms (get it from within a cartel or group or corporation, to which I belong) </li></ul><ul><li>Social networks (get it for free from my neighbor) – remember the intrinsic motivations! </li></ul>
  • 12. Nonmarket Real Estate?
  • 13. &nbsp;
  • 14. Structures of Transactions <ul><li>Characteristics: </li></ul><ul><ul><li>Market transaction must be “crisply” delineated </li></ul></ul><ul><ul><li>Social exchanges are not “crisp” at all </li></ul></ul><ul><li>Social systems are not cost-free </li></ul><ul><li>Pricing of human time and talent varies widely across professions and locations </li></ul>
  • 15. Efficiency of Social Sharing <ul><li>Identify the best person for the job </li></ul><ul><li>May be substantially less expensive </li></ul><ul><li>Tap into people’s social/psychological motivations </li></ul><ul><li>Provide a sustainable alternative to ( not a replacement for) market transaction systems </li></ul><ul><li>Utilize (not waste) human creative capacity </li></ul>
  • 16. When Is It Not Effective? <ul><li>When the means of production required are expensive, or hard to get access to (e.g., large machinery) </li></ul><ul><li>When the raw materials are expensive, or hard to get access to (e.g., steel) </li></ul><ul><li>When technology or systems do not permit sharing </li></ul><ul><li>When people have no time to spare </li></ul>
  • 17. Social Production &amp; Market-based Businesses <ul><li>Social production makes use of time and energy that would usually be wasted in a purely market system </li></ul><ul><li>The effect on market activities is not neutral, however </li></ul>
  • 18. Social Production &amp; Market-based Businesses (2) <ul><li>Social production poses real threats toward (some) market-based activities and enterprises </li></ul><ul><li>Understand these threats -- and we will understand why certain policies and laws are pushed forward (and who would benefit?) </li></ul><ul><li>Contracts vs. “cloud” (role of predictions) </li></ul>
  • 19. Social production changes the system. The more it changes the system, the more important it becomes to the system .
  • 20. User Innovation Networks <ul><li>Can function entirely independently of manufacturers when: </li></ul><ul><ul><li>At least some users have sufficient incentive to innovate </li></ul></ul><ul><ul><li>At least some users have an incentive to voluntarily reveal their innovations, and </li></ul></ul><ul><ul><li>Diffusion of innovations by users is low cost and can compete with commercial production and distribution </li></ul></ul>-- Eric von Hippel (2002)
  • 21. User Innovation Networks <ul><li>If the first two conditions hold but the third (low-cost distribution) does not: </li></ul><ul><ul><li>A pattern of user innovation and trial and improvement will occur within user networks, followed by -- </li></ul></ul><ul><ul><li>Commercial manufacture and distribution of innovations that prove to be of general interest </li></ul></ul>-- Eric von Hippel (2002)
  • 22. The End Benkler, Chapter 4 Presentation by Mindy McAdams

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