I know you’ve been waiting for this. Here is, finally, chapter 4. This book is really good, but it’s also very slow going. It will take me a while to finish it, I think. I’m hoping to really read a lot of it in the next couple of weeks.
A note, for those of you that don’t read my personal blog: I’m moving on Tuesday, from California back to Massachusetts - a very long meandering trip that will take about a month (it’s a long story - read the blog). So I’ll probably be doing more blogging on my personal blog than on this blog, just because I won’t have lots of online time, and I’ll be more in a travel mode, than a thinking-about-technology mode. But I do have a bunch of things on tap, like continuing with Benkler, finishing my Open Standards series, and continuing the open source databases. I also have been doing a bit more thinking about what is, in some ways, the undercurrent of this blog: spirituality and technology. There have been some interesting ideas marinating, that I’ll share soon. OK, on to Benkler…
Chapter 4 is called “The Economics of Social Production.” In this chapter, Benkler is laying out an important argument: people engage with social production for a variety of motivations, and that it is possible to generate economically significant amounts of effort with motivations that are not economic. In addition, the increasing involvement of social production in market-based business will change the way that business is organized. His basic argument is summarized as :
“It is the feasibility of producing information, knowledge, and culture through social, rather than market or proprietary relations - through cooperative peer production and coordinate individual action - that creates the opportunities for greater autonomous action, a more critical culture, a more discursively engaged and better informed republic, and perhaps, a more equitable global community.”
I think that’s something we can likely all agree is a good thing.
First, he asks “why do people participate” - he talks about the simple economic models of human motivation - which assume that there are “things people want, and things they want to avoid” and those can be translated into money - a universal medium of exchange. He explains, with some great examples, of why these are wrong. “If you leave a fifty-dollar check on the table at the end of a dinner party at a friend’s house, you do not increase the probability that you will be invited again.” He then talks about the importance of social capital over money: “If you want to get your nephew a job at a law firm in the United States today, a friendly relationship with the firm’s hiring partner is more likely to help than passing on an envelope full of cash.” People would rather participate in some things for social standing and recognition, rather than money.
He then talks about feasibility and efficiency of peer-based production vs. market-based production, and comes up with this stunning statement:
“A society whose institutional ecology permitted social production to thrive would be more productive under these conditions than a society that optimized its institutional environment solely for market- and firm- based production, ignoring its detrimental effects to social production.”
His arguments are compelling, and interesting. He then talks about how social production has emerged in the digitally networked environment, and the ways in which it has interfaced with market-based production - using examples such as Red Hat and IBM. And he talks about how the relationship between users and businesses changes:
“Active users require and value new and different things than passive consumers did. The industrial information economy specialized in producing finished goods, like movies or music, to be consumed passively, and well behaved appliances, like televisions, whose use was fully specified at the factory door. … Personal computers, camera phones, audio and video editing software and similar utilities are examples of tools whose value increases for users as they are enabled to explore new ways to be creative and productively engaged with others.”
The nonprofit take-away came to mind for me was to think about the model of nonprofits as passive consumers of software, vs. nonprofits actively engaged in collaboration in a peer-production environment - they are more able to define clearly what that software looks like, and how it works for them.
On to chapter 5…
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