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Open economics - Montreal living lab / CIRANO


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Journée Mondiale de l'Utilsiabilité 2011
Présentation de Louise Guay, Fondatrice et Présidente du Montreal Living Lab

Published in: Technology, Economy & Finance
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Open economics - Montreal living lab / CIRANO

  1. 1. Montreal Living Lab / CIRANO Towards Open Economics
  2. 2. Who we are <ul><li>Open innovation & co-design center </li></ul><ul><li>Smart cities, urban mobility, virtual identity, gamification, etc. </li></ul><ul><li>Online collaborative platform </li></ul><ul><li>Citizen, public, private & academic partners </li></ul><ul><li>Interuniversity research center on organization analysis </li></ul><ul><li>Public policies, risk analysis, finance, sustainable development, etc. </li></ul><ul><li>Experimental economics lab </li></ul><ul><li>180+ researchers </li></ul>
  3. 3. <ul><li>The application of game mechanics and game-thinking in non-game environments to increase participation and engagement. </li></ul>What is Gamification?
  4. 4. Massively Multiplayer Online Games <ul><li>Online games (MMOs) reach millions of players in large-scale collaborative environments. </li></ul><ul><li>Can millions of people play games for science and profit? </li></ul>Hermione Nemo_12 X-man TODZ wizKid SnowBall
  5. 5. The G OLDCORP Challenge <ul><li>Open innovation contest </li></ul><ul><li>In 2000, GoldCorp put 000’s of pages of complex geological data online. </li></ul><ul><li>To help discover new veins of gold at its Red Lake mine, Ontario, Canada. </li></ul><ul><li>US $500,000 in prize money </li></ul><ul><li>Over 1,400 corporations, consultants and universities from 50 countries entered the contest. </li></ul><ul><li>More than 8 million ounces of gold found. </li></ul><ul><li>Company’s value rocketed from $100M to $9B </li></ul>
  6. 6. Serious Games for Science <ul><li>Foldit </li></ul><ul><li>3D puzzle for protein </li></ul><ul><li>pattern identification </li></ul><ul><li>234,000 users </li></ul><ul><li>600 protein puzzles solved </li></ul><ul><li>GalaxyZoo </li></ul><ul><li>Visual classification </li></ul><ul><li>of Hubble space photos </li></ul><ul><li>400,000 users </li></ul><ul><li>1 million galaxies </li></ul>Biotech Astronomy
  7. 7. Is there any data issue too big to handle?
  8. 8. The Big Data Tsunami <ul><li>Fact : </li></ul><ul><li>Geolocation, smartphone & transactional data are piling up. </li></ul><ul><li>Issue : </li></ul><ul><li>How to identify, measure & understand behavioral patterns? </li></ul>
  9. 9. Experimental Economics Understanding fundamentals of individual & group behaviors
  10. 10. Beyond Risk Analysis Trust Collaboration Coordination Patience Ambiguity Fairness Uncertainty Measuring people’s preferences for...
  11. 11. From the Lab to In-field & Online Research <ul><li>Open Economics </li></ul><ul><li>Citizens for economic development </li></ul>
  12. 12. Center for Open Economics <ul><li>What is it needed for? </li></ul><ul><li>To apply experimental economics to emergent fields of applications: </li></ul><ul><ul><li>Open Data Analysis </li></ul></ul><ul><ul><li>Serious Game Design </li></ul></ul><ul><ul><li>Dynamic Pricing </li></ul></ul><ul><ul><li>Collaborative Forecasting </li></ul></ul><ul><ul><li>Open Finance </li></ul></ul><ul><ul><li>Impact Investment </li></ul></ul><ul><ul><li>Clean Tech </li></ul></ul><ul><ul><li>Change Management, etc. </li></ul></ul><ul><li>What is it? </li></ul><ul><li>International, multidisciplinary collaboration network </li></ul><ul><li>Bridging the gap between experts and citizens worldwide </li></ul><ul><li>Montreal-based </li></ul><ul><li>Opening: 2012 </li></ul>
  13. 13. Montreal Living Lab / CIRANO Towards Self-optimized Cities
  14. 14. Bike-sharing Worldwide Market Operation Dilemma: System scalability vs Closed business model
  15. 15. A Self-optimization Game for Bike-sharing Systems Station A Involve users into a “mission” Hi! Station B Get rewards and cash rebates Near Full Near Empty 9 1 $ $ $ Ride to empty bike stations
  16. 16. Game Play <ul><li>Social game: </li></ul><ul><ul><li>To rebalance bike stations for the benefit of both riders and operator. </li></ul></ul><ul><ul><li>Invest riders with a mission, and provide tools for them to reach it. </li></ul></ul><ul><li>Each mission is a ‘micro contract’ from which you will gain something. </li></ul><ul><ul><li>Merchants offering rewards to riders according to nearest stations imbalance state. </li></ul></ul><ul><ul><li>Actual rewards must meet designated station balancing requirements. </li></ul></ul><ul><li>Based on a dynamic pricing platform opened to all stakeholders. </li></ul><ul><ul><li>Multi-constraint, collaborative negotiation modelling. </li></ul></ul><ul><ul><li>Google Places promoted as the incentive platform of choice. </li></ul></ul><ul><li>By repeating this synchronized pattern on high-scale online system, this game will engage its players. </li></ul><ul><ul><li>By promising both a personal reward and a global one. </li></ul></ul><ul><ul><li>By tracking and visualizing in real time data generated by the game. </li></ul></ul><ul><li>This game massively integrates in the social aspect of people’s life. </li></ul><ul><ul><li>Provides suggestions of places to go / buy / dream / share with friends. </li></ul></ul><ul><ul><li>Opt-in-based. </li></ul></ul><ul><ul><li>Users are in control of how things work for them. </li></ul></ul><ul><ul><li>Merchants & participating bikers grow reputation together. </li></ul></ul>
  17. 17. Self-optimization Platform Incentive Program Bike Network Simulation Model Optimization Engine Optimization Goals Dynamic Pricing Engine Incentive Plan Design Google Places APIs Mobile App User Profile Mission Selector Scoreboard Rewards Earned Bike Network Data Stream
  18. 18. System Co-design <ul><li>Optimizing complex open systems is improved... </li></ul><ul><ul><li>By providing an open collaborative platform. </li></ul></ul><ul><li>Get people from outside organizations to collaborate for... </li></ul><ul><ul><li>Identifying relations and parameters describing user needs, material constraints, stakeholder interests, system resources, etc. </li></ul></ul><ul><li>Simulation models created cooperatively are... </li></ul><ul><ul><li>More accurate as their complexity increases. </li></ul></ul><ul><li>Dynamic pricing and optimization algorithms... </li></ul><ul><ul><li>Provide real-time feedback to all participants. </li></ul></ul><ul><ul><li>Help them to further improve their incentive plans. </li></ul></ul>
  19. 19. Revenue Model <ul><li>How do we make money? </li></ul><ul><li>Mobile application licensing to bike system operators is just a beginning: </li></ul><ul><ul><li>Already 1900+ bike-sharing systems worldwide. </li></ul></ul><ul><li>Two options: </li></ul><ul><ul><li>Performance-based licenses </li></ul></ul><ul><ul><ul><li>(% of operator’s net savings) </li></ul></ul></ul><ul><ul><li>Traffic-based licenses </li></ul></ul><ul><ul><ul><li>(Monthly fees) </li></ul></ul></ul><ul><li>London </li></ul><ul><li>Paris </li></ul><ul><li>Montreal </li></ul><ul><li>Mexico City </li></ul><ul><li>Tel Aviv </li></ul><ul><li>Nagoya </li></ul><ul><li>San Francisco </li></ul><ul><li>Buenos Aires </li></ul>
  20. 20. Growth Potential <ul><li>There’s more! </li></ul><ul><li>Dynamic pricing models apply to several more urban resources: </li></ul><ul><ul><li>Parking, transit, energy, telcos, entertainment, etc. </li></ul></ul><ul><li>Investors’ perspective </li></ul><ul><li>Increasing urban density profits to all investment sectors. </li></ul><ul><ul><li>Freeing market liquidity is key. </li></ul></ul>
  21. 21. Freeing New Market Liquidity With Alternate Transportation <ul><li>Liquidity per Household </li></ul><ul><li>Average Canadian Household Size = 2.5 </li></ul><ul><li>Car per Household = 1.55 </li></ul><ul><li>Liquidity per 1M People </li></ul><ul><li>Cars per 1M people = 620,000 </li></ul><ul><li>Households = 400,000 </li></ul>(Based on an average car annual cost of ownership of $11,000 CDN. Alternate transportation fares available in Montreal from Communauto, STM and Bixi.) D) Available Liquidity (B-C): B) Saved Cost on Car Ownership: C) Alternate Transportation Fares: A) Annual Car Ownership Cost: (per 1M People) $1.57B – $1.16B $2.73B $6.82B Assuming a 40% conversion rate C) Available Liquidity (A-B): $9,808 B) Alternate Transportation Fares: (Car-sharing + Transit + Bike-sharing) – $7,242 A) Annual Car Ownership Cost: (per Household) $17,050
  22. 22. New Liquidities by City $7.4B Toronto $5.2B Montreal $3.1B Vancouver City Toronto Montreal Vancouver Total: Pop. 4.8M 3.3M 1.9M 10.0M Liquidity $7.4B $5.2B $3.1B $15.7B
  23. 23. Thank you! <ul><li>Louise Guay </li></ul><ul><li>[email_address] </li></ul><ul><li>Claude Faribault </li></ul><ul><li>[email_address] </li></ul>