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This document discusses Yochai Benkler's ideas about commons-based peer production and new economic frameworks from his work "The New Open Source Economics" and "Coase's Penguin, or Linux and the Nature of the Firm". It covers Benkler's four transactional frameworks, how commons-based peer production works, and addresses three questions: why people participate in commons-based peer production, how it works utilizing new communication tools, and that peer review helps ensure good results.

Technology Economy & Finance

Teaching Team 8 Ketaki Mackenzie Sean Tommy

Economics Background Yochai Benkler’s “ The New Open Source Economics” (video) “ Coase’s Penguin, or Linux and the Nature of the Firm”

market http://economics.blog.co.in/files/2008/03/equilibirium.JPG http://www.unesco-ihe.org/var/ihe/storage/images/media/images/skyscraper/20844-1-eng-GB/skyscraper_reference.jpg firm / government Original Transactional Frameworks

http://economics.blog.co.in/files/2008/03/equilibirium.JPG http://www.unesco-ihe.org/var/ihe/storage/images/media/images/skyscraper/20844-1-eng-GB/skyscraper_reference.jpg http://communities-dominate.blogs.com/photos/uncategorized/2007/10/28/p2pgovernance_id3929961_size480.jpg firm / government commons based production market How do you choose? transaction costs

Benkler’s Four Transactional Frameworks “social sharing and exchange” commons based peer production open source X Table from Benkler video social production government; non-profits firm hierarchy centralized X (we are here) price system decentralized non-market-based market-based

commons based peer production http://www.fao.org/docrep/003/X7579E/x7579e05.gif http://www.we-make-money-not-art.com/wow/0aasocialatatg.jpg

“ What this means is that for the first time since the Industrial Revolution, the most important means , the most important components of the core economic activities … of the most advanced countries … are in the hands of the population at large .” - Benkler (video)

Three economic questions: 1) Why do people do it? 2) How does it work? 3) How good are the results?

Why do people do it? benefits: social-psychological and reputation new motivational structure vs http://upload.wikimedia.org/wikipedia/commons/3/32/Prisoners_dilemma.png http://www.imagechef.com/ic/make.jsp?tid=Sticky+Note

How does it work? new capabilities of communication tools information is a public good increasing returns to scale http://www.flightsafrica.co.uk/blog_images/beach3.jpg http://content.answers.com/main/content/img/investopedia/diseconomiesofscale.gif

How good are the results? solves principal-agent problem “ practically all successful peer production systems have a robust mechanism for peer review or statistical weeding out of contributions from agents who misjudge themselves” Dewey vs Lippmann

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Team Teach 8 Slides Rough

1. Teaching Team 8 Ketaki Mackenzie Sean Tommy

2. Economics Background Yochai Benkler’s “ The New Open Source Economics” (video) “ Coase’s Penguin, or Linux and the Nature of the Firm”

3. market http://economics.blog.co.in/files/2008/03/equilibirium.JPG http://www.unesco-ihe.org/var/ihe/storage/images/media/images/skyscraper/20844-1-eng-GB/skyscraper_reference.jpg firm / government Original Transactional Frameworks

4. falling barriers to entry

5. http://economics.blog.co.in/files/2008/03/equilibirium.JPG http://www.unesco-ihe.org/var/ihe/storage/images/media/images/skyscraper/20844-1-eng-GB/skyscraper_reference.jpg http://communities-dominate.blogs.com/photos/uncategorized/2007/10/28/p2pgovernance_id3929961_size480.jpg firm / government commons based production market How do you choose? transaction costs

6. Benkler’s Four Transactional Frameworks “social sharing and exchange” commons based peer production open source X Table from Benkler video social production government; non-profits firm hierarchy centralized X (we are here) price system decentralized non-market-based market-based

7. commons based peer production http://www.fao.org/docrep/003/X7579E/x7579e05.gif http://www.we-make-money-not-art.com/wow/0aasocialatatg.jpg

8. “ What this means is that for the first time since the Industrial Revolution, the most important means , the most important components of the core economic activities … of the most advanced countries … are in the hands of the population at large .” - Benkler (video)

9. Three economic questions: 1) Why do people do it? 2) How does it work? 3) How good are the results?

10. Why do people do it? benefits: social-psychological and reputation new motivational structure vs http://upload.wikimedia.org/wikipedia/commons/3/32/Prisoners_dilemma.png http://www.imagechef.com/ic/make.jsp?tid=Sticky+Note

11. How does it work? new capabilities of communication tools information is a public good increasing returns to scale http://www.flightsafrica.co.uk/blog_images/beach3.jpg http://content.answers.com/main/content/img/investopedia/diseconomiesofscale.gif

12. How good are the results? solves principal-agent problem “ practically all successful peer production systems have a robust mechanism for peer review or statistical weeding out of contributions from agents who misjudge themselves” Dewey vs Lippmann

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