Sociology

When Push comes To Pull: The New Economy and Culture of Networking Technology

One Sentence Summary:
Information and communication technology innovation have begun to transform commercial business and social institutions from a "push" technology approach (hierarchical "center out"), to a "pull" technology approach (networked -based and decentralized). This poses new challenges to social, political, and educational systems that are largely designed to support "push" economies.
Disciplines:
Business
Law
History
Cultural Evolution
Technology
Economics
Political Science
Sociology
Findings:
  • We are living in an epochal period of transition bridging two very different types of economies and cultures. We are transitioning from a "push" economy: that tries to anticipate consumer demand, and then creates a standardized product, and "pushes the product into the market and culture, using standardized distribution channels and marketing. We are transitioning to a "pull" economy: open and flexible production platforms that use network technologies to coordinate many different entities from disparate regions.. "Pull" economies produce customized products and services that serve localized needs (demand-driven), usually in a rapid manner.
  • "Pull" networks tend to build the capabilities of their networked partners, by providing performance feedback and sharing best practices among the network participants. "Pull" platforms therefore tend to better employ the enthusiasm of all of the participants.
  • The "pull" phenomenon is not confined to business/online commerce. The spread of common use of internet technologies is finding "pull" techniques being applied in entertainment, social life, politics, education, and government.
  • "Pull" models are going to change the way that governments create policy as more companies gravitate toward them.
Keywords:
capitalism
communication
complexity
cooperation
cultural evolution
group forming networks
hierarchy
intellectual property
interdependence
networks
norms
open source
property rights
reciprocity
reputation
social capital
trust
Author(s) / Editor(s):
Published in:
The Aspen Institute
Date:
2006
One Paragraph Summary:

Over the past 25+ years, change that has usually originated with technological innovation has led to new products, services, and human behavior patterns. These changes are reflected in business and industry, and the way that people entertain, govern, educate, and socialize among themselves. The change is from a centralized, command and control, bureaucratic, broadcast way of organizing, that tries to anticipate and create demand, to a decentralized and highly networked system that shares information about overall network performance and best practices among it's network, and meets local and specialized needs.

One Page Summary:

This paper is a summary of an Aspen Institute sponsored in-depth roundtable session, written from the perspective of one informed conference observer (Bollier). The participants are leading thinkers in the many complex areas this paper covers (economics, systems theory, human behavior, human futures, information technology evolution, etc) and are listed on page 57. A selection of their key insights shared in the paper are listed below:

A "push" economy is geared towards mass production, anticipating consumer demand, and routing resources to the right place at the right time, to create standardized and mass produced products. By contrast, a "pull" economy is based on open, flexible production platforms that are used to orchestrate a broad range of resources. Instead of producing standardized products, "pull" model companies are demand-driven, and assemble products in customized ways that serve specialized or local needs, usually using "rapid" or "on the fly" processes.

Several global corporations are moving towards "pull" methods, and away from "push" models; ie., Toyota, Dell, Cisco, Li & Fung. These companies employ different variations of Value Network models, that share information about overall network performance and best practices for serving specialized needs, among hundreds or even thousands of partner companies that make up the network. This creates an intra-network knowledge commons. Some companies also work closely with Open Source Software projects, thereby expanding their "pull" network, and expanding their knowledge commons into a broader Open Commons via Open Source Software project contributions. Thus, "pull" business models also tend to be Network Value-Increasing, and Commons-based business models as well.

"Pull" models can also be platforms for creating "increasing returns dynamics." This is due to "pull" models being based around loose and flexible networks that are already configured to scale as growth occurs. So, growth does not incur the huge overhead costs in administration that "push" models must contend with. Pull platform key characteristics include modular and loosely-coupled networks, open channels that better harness the passion and commitment of innovation communities. "Pull" platforms also will tend to influence public policy with regards to education and innovation, as more companies tend to gravitate towards the "pull" models.

The areas where "push" models tend to succeed in business are in areas where people do not know what they want, and prefer to shop from pre-made selections (Ikea, Home Depot). However, there are even "pull" models to found here, in the form of user-driven innovation, such as mountain biking, extreme skiing, hot rodding, etc. In these pro-amateur niches, customers don't necessarily know what they want, but do want to be a participant in the "pull" network that creates the product.

How do you tax a product that is made in 23 different countries? "Pull" models are going to change the way that governments create policy as more companies gravitate toward them. This will influence laws about intellectual property, education, taxation and more.

"Pull" economies are not just centered around finding creative ways to "outsource/offshore jobs" away from one place and to the places where "labor" is "cheaper". Successful "pull" models have encouraged and aided "insourcing", where more jobs are created, for instance in the United States by "foreign sources (a total of 7 million cited by this paper), than are out sourced (a total of 600,000+ cited by this paper). This is because pull models seek out, not just the "cheapest" labor, but the best ways to add value to the production networks. So, they can scale to many participants around the world, regardless of local labor costs, to find the best participants needed for specific specialized productions.

The social dynamics of "pull" models are highly centered around creating relationships of trust, sharing knowledge, and close cooperation among network participants. In "pull" models, non-market value creation (tacit knowledge, intangible value) is generally steered towards a commons-based model. A commons is used as a "collective governance regime for managing shared resources sustainably and equitably." Many of these commons are made possible by networked information technologies (the internet).

Bollier suggests that "if online commons are going to be useful to business, companies will need to do more work to develop protocols for identity and reputation management". This is because the use of the commons is based around trust. It also due to the need for ways to measure qualitative value in intangible assets beyond money, like knowledge, individual performance and value multiplication, and network wide performance/value multiplication.

Roundtable participants also noted that "pull" models will pose challenges to current education regimes that are centered around training people to participate in "push" economies. One of the participants mentions that " Computers, software tools, and Internet resources make possible some radically new styles of learning. By using pull-based systems, students can function much like businesses in the pull environment: They can access resources they don't control and put themselves into flows of activity, rather than just building inventories of static, objectified "knowledge."

Towards Realistic Models for Evolution of Cooperation

One Sentence Summary:
The five major approaches to answering how cooperation emerges and becomes stable in nature (Group Selection, Kinship Theory, Direct Reciprocity, Indirect Reciprocity, and Social Learning) might be improved by not presuming asexual and non-overlapping generations, simultaneous-play for every interaction, dyadic interactions, mostly predetermined and mistake-free behavior, discrete actions (cooperate or defect), and the trivial role of social structure and social learning of individuals.
Disciplines:
Biology
Cultural Evolution
Sociology
Findings:
  • Observer-based reciprocity relaxes the requirement that each individual's likelihood of cooperating be known globally by introducing randomly selected observers. Even though interactions are only visible to these observers cooperation can still evolve showing "that cooperation may evolve through indirect reciprocity with or without global knowledge about agents' image scores."
  • Darwin's notion of the "survival of the fittest" does not specify what "fittest" refers to, and for good reason: the outcome of a behavior in each contingent situation determines its fitness. Different interpretations of "fittest" lead to different models for how natural selection works and therefore offer different explanations for the evolution of cooperation.
Keywords:
trust
reputation
reciprocity
evolution
cultural evolution
cooperation
competition
bioeconomy
altruism
agent-based model
Author(s) / Editor(s):
Published in:
MIT LCS Memorandum
Date:
2002
One Paragraph Summary:

Sociological and biological observations of humans and animals show that cooperation is an inherent part of human life and the life of many animals. This poses two questions: how do cooperative strategies become stable within evolution? And, how does cooperation emerge initially? Even though researchers have tried to answer these questions for at least a century, existing models do not fully explain why cooperation evolves. There are five major approaches: Group Selection, Kinship Theory, Direct Reciprocity, Indirect Reciprocity, and Social Learning. Each of these models explain only a few aspects of cooperation and might be improved by dropping some unrealistic assumptions: asexual and non-overlapping generations, simultaneous-play for every interaction, dyadic interactions, mostly predetermined and mistake-free behavior, discrete actions (cooperate or defect), and the trivial role of social structure and social learning of individuals.

The Success of Open Source

One Sentence Summary:
Open source software, a form of social organization that configures intellectual property around the right to distribute, not the right to include, is a political economy and production system process, enabled by the Internet, that makes possible voluntary, distributed innovation and collective creation of complex public goods with neither the bureaucratic structure of the firm as we know it or the financial incentives of the market as we know them.
Disciplines:
Business
Law
Computer Science
Economics
Sociology
Information
Findings:
  • The GPL (General Public License) uses copyright law to configure property around the right to distribute rather than the right to exclude. The GPL, by preventing any users from adding restrictions that could deny these rights to others, extends the freedom to run programs, to study how they work, to modify them, to redistribute copies gratis or for fee, to change and improve them and to redistribute modifications. This "shifts the fundamental optic of intellectual property rights away from protecting the prerogatives of an author toward protecting the prerogatives of generations of users."
  • Together with the Internet as a coordinating medium and a shared set of norms that constitute a community, the GPL creates a system of value creation and a set of governance mechanisms that enable the distributed production, maintenance, and development of highly complex software code.
  • The motivations of highly talented programmers to voluntarily contribute include the opportunity to learn the programming craft, the pleasure of working on high quality code, reputation capital, and contribution to a battle against Microsoft and proprietary software in general.
  • As important as the code is the process by which it is built. The open source community's organizing principles include "criteria for entering and leaving, leadership roles, power relations, distributional issues, education and socialization paths, and all the other characteristics that describe a nascent culture and community structure."
  • "The open source process has generalizable characteristics, it is a generic production process, and it can and will spread to other kinds of production. The question becomes, are there knowledge domains that are structured similarly to the software problem?" "The key concepts of the argument – user-driven innovation that takes place in a parallel distributed setting, distinct forms and mechanisms of cooperative behavior regulated by norms and governance structures, and the economic logic of "antirival" goods that recasts the "problem" of free riding – are generic enough to suggest that software is not the only place where the open source process could flourish.
  • "The key element of the open source process, as an ideal type, is voluntary participation and voluntary selection of tasks." Coordination costs are dramatically lowered by self-election: each contributor chooses what to work on, when to start, and when to quit.
  • "Eight general principles that capture the essence of what people do in the open source process: Make it interesting and make sure it happens; scratch an itch (link private contributions to a public good); minimize how many times you have to reinvent the wheel; solve problems through parallel work processes whenever possible; leverage the law of large numbers; document what you do; release early and release often; talk a lot.
  • Open source production is social because it is a product of voluntary collective collaboration, political because structures and organizations allocate resources and manage conflicts, technical because the final product is software code that must work, and economic in a fundamental sense of understanding the way individual choices about what to do with limited time and energy aggregate to a macrolevel.
  • Motivations for contributing include the fun of programming, the opportunity to learn the craft of programming, an urge to contribute to the open source community, ego-boosting (but not bragging – the norm is that the work brags for you), and reputation. A simple but fundamental shared belief is "the notion that personal efficacy not only benefits from, but positively requires, a set of cooperative relationships with others."
  • Rishab Aiyer Ghosh reframed the collective action problem of contributing to open source software by using the image of a vast tribal cooking pot into which one person puts a chicken, another puts in onions, and they each take out a bowl of stew; ordinarily, stews are vulnerable to free-riders who take out but don't contribute, but the Internet makes digital products like software "magically" non-rival: "If a sufficient number of people put in free goods, the cooking pot clones them for everyone so that everyone gets far more value than was put in.
  • The system at a whole benefits from riders, who help invoke network effects by growing the user base; further, if even a small number of free-riders who use but don't create code report the existence of a bug or ask for a needed feature, the effectiveness of the production system increases.
  • Coordination is mediated by social norms: ownership customs enshrined in the GPL; decision-making and support ownership customs; and the technical rationality of "let the code decide."
  • "End-to-end innovation goes a step beyond simply reduced transaction costs. It enables parallel processing of a complex task in a way that is not only geographically dispersed but also functionally dispersed. End-to-end architecture takes away the central decision-maker in the sense that no one is telling anyone what to do or what not to do. This is the essence of distributed innovation, not just a division of labor. There are no weak links in this chain because there is, in a real sense, no chain. Innovation is incentivized and emerges at the edges,; it enters the network independently,; and it gets incorporated into more complex systems when and if it improves the performance of the whole."
  • Four organizational principles needed for distributed innovation: "Empower people to experiment." "Enable bits of information to find each other." "Structure information so it can recombine with other pieces of information." "Create a governance system that sustains this process."
  • "The notion of open-sourcing as a strategic organizational decision can be seen as an efficiency choice around distributed innovation, just as outsourcing was an efficiency choice around transaction costs."
  • Hierarchies and networks exist in a dynamic relationship over time; one form may come dominate, or each can coexist in appropriate niches. "Most interesting will be the new forms of organization that emerge to manage the interface between them, and the process by which those boundary spanners influence the internal structure and function of the networks and the hierarchies that they link together." Future turmoil at this interface will be political as well as economic.
  • Open source process most likely to work effectively when potential contributors can judge the viability of the evolving product, have the information they need to make informed bets that contributions will add up to something useful for all, are driven motives beyond simple economic gain and have a relatively long "shadow of the future," learn by doing and gain personally valuable knowledge, share a positive norm about the value of contributing to the process.
Keywords:
sharing economy
open source
peer production
Author(s) / Editor(s):
Published in:
Harvard University Press
Date:
2004
One Paragraph Summary:

The Internet and a decentralized means of social organization around a production goal make possible "distributed innovation" that radically reduces both transaction and coordination costs, making possible the collective creation of public goods. Although open source software production is the most successful example of this process, it is not the only one. Self-interest combines with a norm of sharing a public good that benefits all; learning, reputation capital, and solving a problem one already needs to solve ("scratching an itch") are individual motivating factors. Self-election eliminates the cost of hierarchical management – individuals decide what to work on. Free-riders contribute to positive network effects by increasing the size of the user base, and aggregate infinitesmal contributions into significant efficiency gains by occasionally reporting a rare bug or complaining about a missing feature.

The Strategy of Affect: Emotions in Human Cooperation

One Sentence Summary:
Emotions appear to be a key regulator of behavior in cooperative relationships. Emotions affect behavior both directly, by motivating action, and indirectly, as actors anticipate others' emotional responses.
Disciplines:
Biology
Anthropology
Cultural Evolution
Sociology
Psychology
Findings:
  • Emotions furnish the most important reason why humans don't make decisions as rational actors who seek only to maximize our individual well-being.
  • Evidence indicates that besides being the subject of sonnets and the blues, emotions are a way of thinking, a non-logical but nonetheless computational system that co-evolved with the increasing sophistication of human group formation.
  • Emotions furnish a non-rational instrument for social behaviors such as bonding, trusting, judging, and monitoring that enable people to break out of the Prisoner's Dilemma and find ways to cooperate on mutual enterprises.
  • Models of cooperation based on strictly rational game-theoretic algorithms will always be incomplete until they take into account the non-rational but nevertheless instrumental role of emotion.
  • The power of emotions can be leveraged to get group members to contribute to collective self-management of resources.
Keywords:
cultural evolution
emotion
Published in:
Genetic and Cultural Evolution of Cooperation (Dahlem Workshop Report), The MIT Press / Dahlem University Press
Date:
2003
One Paragraph Summary:

"Emotions appear to be a key regulator of behavior in cooperative relationships. Emotions affect behavior both directly, by motivating action, and indirectly, as actors anticipate others' emotional responses. The influence of emotions is understandable once it is recognized that (a) the ability to benefit from cooperative relationships has been a key determinant of biological fitness throughout our species' history, and (b) panhuman emotions are adaptations crafted by natural selection. Different emotions affect cooperative behavior in different ways: some emotions lead actors to forego the temptation to defect, some lead them to reciprocate harm suffered or benefits provided, and some lead them to repair damaged relationships. An important class of emotions influences cooperative behavior in part by motivating conformity to norms and/or punishment of norm violators…."

One Page Summary:

The authors distinguish between emotions that operate primarily in dyadic relationships and emotions that operate in a significant manner in collective contexts. The authors examine the evolutionary role each emotion and cite research about ways these emotions might contribute to the creation and maintenance of cooperative behaviors: "This chapter is premised on the claim that human cooperation is profoundly shaped by, and perhaps only possible because of, emotions. We will examine the manner in which different emotions shape behavior in cooperative contexts…Although framed within an evolutionary psychological perspective, our goal is not to present definitive evidence of the validity of this particular approach, but rather to spur future investigations of the role of emotions in cooperation. Toward that end, on an emotion-by-emotion basis we will both briefly describe a variety of existing findings and present a number of hypotheses, specifying discrete, testable predictions whenever possible."

Emotions that are primarily dyadic include romantic love, gratitude, anger, envy, jealousy, guilt righteousness and contempt. Romantic love is seen as a means of overcoming a barrier to the kind of cooperation we see in parenting -– the temptation to defect in the short term on a relationship that requires a long-term investment. "A number of investigators have suggested that some emotions can be understood as mechanisms design to commit people to behavior that yields long-term payoffs, thus overcoming the temptation for short-term defection. Romantic love, a universal human emotion that underpins pair bonding, appears to be such a mechanism."

Where romantic love is about how one feels about another person, gratitude addresses how one feels about somebody's behavior, and can be an emotional currency that binds one to reciprocity. "Gratitude focuses both attention and a positive, affiliative orientation on a party who has supplied the actor with a substantial benefit. In the context of its initial elicitation, gratitude seems to prompt the actor to recognize a valuable interaction partner and subsequently signal a willingness to reciprocate."

Why do people get so angry when someone cuts ahead of them in a queue or in traffic? This is clue to the evolutionary advantage of anger as a means of protecting ones own interests, but when it comes to the thus-far unexplained human propensity to punish cheaters, even at a cost to themselves, anger might be instrumental in conferring advantage to a group that requires monitoring and sanction of free riders in order to maintain a public good or create an institution for collective action: "If gratitude is elicited by receipt of a benefit, its opposite is anger, elicited by actual ar attempted exploitation or harm. More formally, anger is the response to the infliction of a cost. In addition to showing an "irrational" willingness to reward generosity, subjects in behavioral economics experiments also show an eagerness to punish uncooperative partners…Together, these results clearly demonstrate that even within the confines of finite anonymous games, angry individuals often place paramount importance on harming the transgressor, and are willing to incur substantial costs in order to do so."

The Rise of Open-Source Politics

One Sentence Summary:
Internet facilitated tools and practices reached critical mass in the 2004 elections enabling ordinary people to participate in processes that had been closed to them by top-down political organizations.
Disciplines:
Political Science
Sociology
Findings:
  • In the 2004 elections, Internet tools enabled ordinary people to participate in political processes formerly closed to them.
  • Technology is leading to the rebirth of a type of mass participation common in the first half of the 1900s that had been replaced by professionally run, top-down advocacy organizations.
  • Top-down groups were abetted by mass communications technologies like television. Increased access to web-based social software tools encourage bottom-up participation by peers with presumably increased transparency and accountability similar to what happens in open-source software development communities.
  • Open-source politics is a long way off because of the resistance of the political establishment. In “open source” software development communities, any participant can see, critique, and improve the underlying code. Peer review permits steady improvement. In open-source political groups, planning and implementation of policies would be transparent and open to critique and improvement, an inherent threat to entrenched ego-centric, top-down organizations. However, the old order may have no choice in the matter.
  • Because of the “digital divide” and the amount of time spent online, Internet facilitated political participation is still largely a white middle- and upper-class phenomenon. However, this may be generational: younger people of all socio-economic groups are growing up with the tools and shaping them to their needs and desires.
Keywords:
civil society
democracy
Author(s) / Editor(s):
Published in:
The Nation
Date:
November 22, 2004
One Paragraph Summary:

Internet facilitated tools and practices reached critical mass in the 2004 elections enabling ordinary people to participate in processes that had been closed to them by top-down political organizations. Old-style political organizations had evolved, abetted by mass media like television, into groups controlled by insiders. The mass participation that peaked in the early part of the 20th century was replaced by an increasingly uninterested, disenfranchised mass and a smaller group of wealthy special interests.

One Page Summary:

Internet facilitated tools and practices reached critical mass in the 2004 elections enabling ordinary people to participate in processes that had been closed to them by top-down political organizations.

Old-style political organizations had evolved, abetted by mass media like television, into groups controlled by insiders. The mass participation that peaked in the early part of the 20th century was replaced by an increasingly uninterested, disenfranchised mass and a smaller group of wealthy special interests.

TV took politics away from the grassroots; the Internet could give it back. The people receiving the intended messages could be involved in creating them.

There are varieties of emerging tools in the political ecology: large, top-down organizations like MoveOn.org co-exist with multilayered communities like DailyKos in which peer moderation and rankings lead to the emergence of trusted sources.

Established political parties are behaving like dinosaurs, viewing the new media as tools for more efficiently doing their old work: the Internet is just a new place for a more sophisticated kind of direct mail. They are missing the true significance of the emerging tools and processes. With this attitude, they are likely to become extinct.

Old style, top-down political organizations are afraid of losing control. They are threatened by the dis-intermediation (the removal of middlemen) enabled by the new tools and visible in other commercial domains on the net.

The growth of web based social networking tools and techniques similar to those used to facilitate open source development environments are leading to peer political networks with transparency and accountability.

The Internet currently offers an ecology of interacting and competing groups on both the left and right. These currently range from the traditional party based groups through newer, still top-down groups like MoveOn.org through multilayered communities with peer evaluation and the emergence of trusted users. An example of the latter, DailyKos, has become a very efficient collaboration engine for pooling money for candidates and for rapid fact-checking, news dissemination, and brainstorming.

This evolution is generational. As younger people accustomed to life on the net and the use of social networking tools reach maturity, the replacement of the old ways of doing things will become easier.

Open-source politics is a long way off because of the resistance of the political establishment. In “open source” software development communities, any participant can see, critique, and improve the underlying code. Peer review permits steady improvement. In open-source political groups, planning and implementation of policies would be transparent and open to critique and improvement, an inherent threat to entrenched ego-centric, top-down organizations. However, the old order may have no choice in the matter.

Because of the “digital divide” and the amount of time spent online, Internet facilitated political participation is still largely a white middle- and upper-class phenomenon. Messages tend to circulate through existing social networks. However, this may be generational: younger people are growing up with the tools and shaping them to their needs and desires.

The Quest for Meaning in Public Choice

One Sentence Summary:
Frameworks, composed of theories that are in turn composed of varying models need to be developed to study and make predictions about the complex behaviors that take place in social situations.
Disciplines:
Economics
Sociology
Psychology
Findings:
  • With incomplete information and information-processing capabilities, individuals competing for common-pool resources may make mistakes in choosing strategies designed to realize a set of goals.
  • Communication and sanctioning mechanisms among potentially competing members of a community competing for common-pool resources increases the efficiency and stability of resource exploitation.
  • A shared culture—generally accepted norms of behavior, common understanding, homogeneity of preferences and resources—improves the probability that a community will develop adequate rules and norms to govern the use of resources.
  • The transmission of culture, rules, and norms through information, knowledge, and skills across generations is a challenge for the stability of open, democratic, self-governing societies over time.
Keywords:
civil society
communication
competition
cooperation
game theory
group forming networks
property rights
public goods
sharing economy
Author(s) / Editor(s):
Published in:
American Journal of Economics and Sociology, vol. 63, issue 1, pages 105-147
Date:
January 2004
One Paragraph Summary:

A useful Institutional Analysis and Development (IAD) framework has evolved under the leadership of the Ostroms and their colleagues at Indiana University for over two decades. It has been applied with success in laboratory experiments on social behavior and in field studies and has enabled the creation of useful models with predictive value in diverse situations. Some results from the application of the IAD framework have lead to suggestions for effective use of common resources and norms for community decision making. The importance of effective communication and sanctioning mechanisms in effective community governance has become clear from the use of the framework.

One Page Summary:

The Institutional Analysis and Development (IAD) framework developed by the Ostroms and their colleagues at Indiana University provides a foundation for studying a multitude of theories, models, and predictions of public choice behaviors in different systems of governance and organization.

Frameworks define the action arena to which it would be applied; the resulting patterns of interactions and outcomes, and the means of evaluating those outcomes.

A framework is a general language about how varying rules, physical and material conditions, and attributes of a community affect the structure of action arenas, the incentives for actors, and resulting outcomes.

Action arenas include an action situation and the actors in that situation.

An action situation includes:

  • Participants
  • Positions
  • Outcomes
  • Action-outcome linkages
  • Control that participants exercise
  • Information
  • Cost and benefits of outcomes

Actors (individual or corporate) involve:

  • Resources brought to the situation
  • Values assigned to states of the world
  • Methods for dealing with knowledge and information
  • Selection processes for courses of action

Analysts can make strong predictions in tightly constrained situations of complete information: overuse of resources in an open commons where the actors do not share access to collective choice arenas.

Results are not as clear in situations where actors are embedded in communities with norms of fairness and conservation as well as the ability to communicate with each other.

Evaluation criteria can include a range of values for categories such as the following:

  • Economic efficiency
  • Fiscal equity among actors
  • Redistributional equity (e.g., policies to care for poorer individuals
  • Accountability
  • Conformance to a general morality
  • Adaptability to change

The IAD framework has been applied to various domains to make predictions of resulting behaviors in field settings. Examples of successful application include:

  • Police services
  • Urban public services in general
  • Common-pool resources: these were studied in laboratory as well as field settings. The IAD framework was used to create a theory of behavior. Communication of participants affects behavior: if no communication was permitted, the results approximated that of non-cooperative game theory. Communication led to different, more positive, results.
  • The IAD framework was used to develop extensive databases coding common-pool resources and diverse property regimes.

The Logic of Collective Action: Public Goods and the Theory of Groups

One Sentence Summary:
Rational, self-interested individuals in large groups need a positive incentive or negative sanction delivered through institutional arrangements in order to provide themselves a collective good; in small groups the collective good itself can be incentive enough for individuals to cooperate.
Disciplines:
Economics
Political Science
Sociology
Findings:
  • Findings from studies of small groups cannot be scaled to predict behavior of large groups; the behavior of large groups is qualitatively different.
  • Business interests are successful in organizing toward a political common good because industries often contain a relatively small number of large firms. These firms benefit from the advantages of small groups more than large numbers of workers or consumers.
  • Many non-economic incentives play an important role in motivating cooperation, including prestige, respect, friendship or other social pressures. This is especially the case in small groups characterized by face-to-face contact.
Keywords:
cooperation
group forming networks
norms
public goods
Author(s) / Editor(s):
Published in:
Harvard University Press
Date:
1965
One Paragraph Summary:

Common or public goods are those which if consumed by one member of a group, cannot be feasibly withheld from other members. Large groups require some kind of selective sanction or incentive apart from the benefit of the public good itself for individuals to contribute their own time and resources to maintaining a formal organization. The selective aspect of sanctions or incentives indicates that institutions recognize and treat differently those who do not contribute to the public good. Organizations frequently fail to provide public goods on the most optimal scale, because all self-interested individuals try to sacrifice as little of themselves as possible to still gain access to the good. Because groups cannot benefit from fractional quantities of regulating organizations, there is also a necessary minimal cost of maintenance associated with the formation of formal organizations.

The Evolutionary Stability of Cooperation

One Sentence Summary:
Given a variety of strategies ranging from cooperative to combative, cooperative retaliatory strategies tend to be the most stable but remain vulnerable to invasion.
Disciplines:
Political Science
Sociology
Findings:
  • All strategies in iterative prisoner's dilemma games are vulnerable to invasion and therefore inherently unstable.
  • Tit-for-Tat (cooperative) strategies are the most stable. These strategies can withstand higher levels of invasion by competing strategies.
  • All strategies have a threshold of stability, if a certain percentage of the population adopts these strategies they can be self-maintaining.
Keywords:
cultural evolution
equilibrium
evolution
game theory
prisoners dilemma
reciprocity
tit-for-tat
Author(s) / Editor(s):
Published in:
Journal
Date:
June 1997
One Paragraph Summary:

Previous theorists had been divided regarding the stability of Tit-for-tat strategies in prisoners Dilemma gaming. Bendor and Swistak show, through seven theorems, that all strategies can be overwhelmed. There are, however, thresholds of stability where certain nice and retaliatory strategies can withstand large invasions of alternative strategies. At sufficient strength a strategy can either overwhelm the invader, support subcultures of strategy, or co-opt in the invader to a given level of invasion. Even nice and retaliatory strategies have a breakdown point, however. The authors conclude that the anything less than 100% cooperation would be inherently unstable.

One Page Summary:

Theorists have posited that pure tit-for-tat strategies in iterative prisoners dilemma games were invulnerable. Is this correct? The authors seek to answer this question by examining the ability of various prisoners dilemma gaming strategies to withstand invasion by other competing strategies.

Bender and Swistak examine a gaming strategy universe that includes the strategies:

  • Tit for tat - a player will initially cooperate and then in future rounds mimic the behavior of their opponent.
  • Tit for 2 Tats - a player will cooperate for the first two rounds and then defect in rounds where their opponent defected in the previous two.
  • Suspicious Tit for Tat - a player will initially defect and then will mimic their opponent in future rounds.
  • Always Defect
  • Always Cooperate
  • Grim Trigger - Begin by cooperating, if opponent defects then always defect afterward.

These strategies were examined in pure conditions where only one existed, and then competing strategies were introduced. If a given strategy could withstand incursions by competing strategies it was deemed "stable".

Stability proved to be a continuum. All strategies proved to have points of equilibrium. At this point, a strategy can withstand its maximum level of incursion. That point is that strategy's maximum stability.

The Evolution of Cooperation

One Sentence Summary:
"The objective of this enterprise is to develop a theory of cooperation that can be used to discover what is necessary for cooperation to emerge."
Disciplines:
Political Science
Sociology
Findings:
  • The emergence of cooperation can be seen as a consequence of agents pursuing their own interests. It is not necessary to assume that those agents are more honest, more generous, or more cooperative per se.
  • What makes it possible for cooperation to emerge is the fact that the agents might interact again. The choice made now of whether or not to cooperate will affect choices made in later interactions. This called the 'shadow of the future.' The shadow of the future can exist even when the participants are unaware of it, as is the case in biological cooperation (symbiosis).
  • No best rule exists independently of the strategy being used by others. Despite this fact, robust strategies, useful in many contexts, are possible.
  • The evolution of cooperation requires high levels of reciprocal interactions between agents. The absolute number of agents can be small as long as their interactions are numerous.
  • Communities of cooperation, once established, can protect themselves from 'invasion' by less cooperative strategies. "The gear wheels of social evolution have a ratchet."
  • The winning tit-for-tat strategy:
    1. Don't be envious. Don't compare your success to others, only to your own strategic possibilities, i.e. are you employing the best strategy you have?
    2. Don't be the first to defect. Cooperate as long as others are cooperating.
    3. Reciprocate both cooperation and defection. Enforcing the rules is as important as playing by them.
    4. Be transparent. In order for others to coordinate their choices with yours, they have to understand your behavior. Keep it simple and out in the open.
  • Ways to promote cooperation:
    1. Enlarge the shadow of the future. Increase the permanence of cooperative choices or the frequency of interactions.
    2. Change the payoffs. Make the long-term incentives to cooperate greater than the short-term incentives to defect.
    3. Socialize reciprocal cooperation as a norm. Teach people to cooperate first.
    4. Improve collective memory. Collective memory, or culture, is embedded in institutions. Provide access to collective memory.
  • The foundation of cooperation is the durability of the relationship, which allows agents to learn about each other in order to cooperate.
Keywords:
assurance game
agent-based model
communication
cooperation
norms
prisoners dilemma
reciprocity
reputation
security
tit-for-tat
trust
Author(s) / Editor(s):
Published in:
Basic Books
Date:
August 1, 1985
One Paragraph Summary:

Why do people (or other actors) cooperate? "The objective of this enterprise is to develop a theory of cooperation that can be used to discover what is necessary for cooperation to emerge." It uses the Prisoner's Dilemma as a framework for testing theories about balancing self-interest and competition.

One Page Summary:

Chapter 1, The Problem of Cooperation. Why do people (or other actors) cooperate? "The objective of this enterprise is to develop a theory of cooperation that can be used to discover what is necessary for cooperation to emerge." It uses the Prisoner's Dilemma as a framework for testing theories about balancing self-interest and competition.

"In the Prisoners' Dilemma, the strategy that works best depends directly on what strategy the other player is using and, in particular, on whether this strategy leaves room for the development of mutual cooperation."

Chapter 2, TIT FOR TAT. "The iterated Prisoners' Dilemma has become the E. Coli of social psychology," yet people have not paid much attention to how to play the game well. Axelrod organized a computer tournament to which people familiar with PD submitted programs encoding different strategies. The winner was one of the simplest, TIT FOR TAT.

Axelrod then constructed an environment in which different programs competed, and the losing programs were eliminated: this was an ecology that rewarded high scoring programs, and punished others. "This process simulates survival of the fittest. A rule that is successful on average with the current distribution of rules in the population will become an even larger proportion of the environment of the other rules in the next generation. At first, a rule that is successful with all sorts of rules will proliferate, but later as the unsuccessful rules disappear, success requires good performance with other successful rules." In other words, the competition gets tougher.

"The analysis of the tournament results indicate that there is a lot to be learned about coping in an environment of mutual power. Even expert strategists from political science, sociology, economics, psychology, and mathematics made the systematic errors of being too competitive for their own good, not being forgiving enough, and being too pessimistic about the responsiveness of the other side."

The tournaments reveal that "there is a single property which distinguishes the relatively high-scoring entries from the relatively low-scoring entries. This is the property of being nice, which is to say never being the first to defect."

TIT FOR TAT's rules for success:

  • Be nice. Don't be the first to go on the attack. This demonstrates good will, and avoids provoking others.
  • Retaliate. If others attack, retaliate. Not doing so encourages bad behavior and gives niceness a bad reputation.
  • Be forgiving. If others defect but then go back to cooperating, accept the opportunity to move back to a cooperative mode.
  • Be clear. Others can predict what you'll do, be certain that their moves will have definite outcomes. "There is an important contrast between a zero-sum game like chess and a non-zero-sum game like the iterated PD. In chess, it is useful to keep the other player guessing about your intentions. The more the other player is in doubt, the less efficient will be his or her strategy. But in a non-zero-sum setting it does not always pay to be so clever. In the iterate PD, you benefit from the other player's cooperation."

Chapter 4, Trench Warfare. During World War I, "live and let live" arrangements emerged spontaneously between opposing units on the Western Front. Cooperation could take hold because "the same small units faced each other in immobile sectors for extended periods of time." Consequently, they had a more sustained relationship than in mobile warfare, and could develop commonly-understood rules, reciprocity and restraint in attacks, displays of strength (e.g., snipers shooting at hard targets)as well as ethics (recognition that there was an arrangement and violating it was immoral) and rituals (e.g., regular artillery firing).

"Cooperation first emerged spontaneously in a variety of contexts, such as restraint in attacking the distribution of enemy rations, a pause during the first Christmas in the trenches, and a slow resumption of fighting after bad weather made sustained combat almost impossible. These restraints quickly evolved into clear patterns of mutually understood behavior, such as two-for-one or three-for-one retaliation for actions that were taken to be unacceptable."

Chapter 6, How to Choose Effectively. Four suggestions about how to do well in PD:

  • Don't be envious. In a PD, "envy is self-destructive. Asking how well you are doing compared to how well the other player is doing is not a good standard unless your goal is to destroy the other player." However, in an iterated prisoner's dilemma, you can't do better than the other player, unless they're always suckers. "In a non-zero-sum world you do not have to do better than the other player to do well for yourself. The other's success is virtually a prerequisite of your doing well for yourself."
  • Don't be the first to defect (be nice). "It pays to cooperate as long as the other player is cooperating." In a short game, defection can make sense; but in a relationship, taking advantage of the other person is self-defeating.
  • Reciprocate both cooperation and defection. TIT FOR TAT "does not destroy the basis of its own success. On the contrary, it thrives on interactions with other successful rules." However, the right level of forgiveness depends on the context, and the other players' strategies.
  • Don't be too clever. "In a zero-sum game, such as chess it pays for us to be as sophisticated and as complex in our analysis as we can. Non-zero-sum games are not like this. The other player can respond to your own choices. And unlike the chess opponent, the other player in a PD should not be regarded as someone who is out to defeat you." "There is an important contrast between a zero-sum game like chess and a non-zero-sum game like the iterated PD. In chess, it is useful to keep the other player guessing about your intentions. The more the other player is in doubt, the less efficient will be his or her strategy. But in a non-zero-sum setting it does not always pay to be so clever. In the iterate PD, you benefit from the other player's cooperation."

Chapter 7, How to Promote Cooperation. Promoting cooperation can be thought of as an exercise in tinkering with the variables in a PD. "As long as the interaction is not iterated, cooperation is very difficult. That is why an important way to promote cooperation is to arrange that the same two individuals will meet each other again, be able to recognize each other from the past, and to recall how the other has behaved until now."

  • Enlarge the shadow of the future. For cooperation to emerge, players must be in a continuing relationship, with the expectation that it will continue in the future. "Mutual cooperation can be stable if the future is sufficiently important relative to the past." "There are two basic ways of doing this: by making the interactions more durable, and by making them more frequent. [P]rolonged interaction allows patterns of cooperation which are based on reciprocity to be worth trying and allows them to become established," Making interactions more frequent makes "the next interaction occur sooner, and hence the next move looms larger than it otherwise would." You might do this by enforcing isolation, or constructing hierarchies or organizations, which are "especially effective at concentrating the interactions between specific individuals."
  • Change the payoffs. Make defection less attractive, by enforcing laws, or growing the value of long-term incentives.
  • Teach people to care about each other.
  • Teach reciprocity. Reciprocity "actually helps not only oneself, but others as well. It helps others by making it hard for exploitative strategies to survive."
  • Improve recognition abilities. "The ability to recognize the other player from past interactions, and to remember the relevant features of those interactions, is necessary to sustain cooperation. Without these abilities, a player could not use any form of reciprocity and hence could not encourage the other to cooperate."

Chapter 8, The Social Structure of Cooperation.
The social structure of cooperation involves labels, reputation, regulation, and territoriality.

  • Labels are fixed characteristics of an agent that are observable by other agents. Labels affect reciprocity and retaliation via assumptions of group similarity and stereotypes.
  • Reputation is others' belief about the strategies an agent will employ. Reputation may be based on past behavior or on rumours, i.e. reputation can be accurate or merely believed. Reputation affects whether or not other agents will cooperate or defect with you.
  • Regulation involves setting the stringency of a standard of behavior "high enough to get most of the social benefits of regulation, and not so high as to prevent the evolution of a stable pattern of voluntary compliance from almost all of the companies" (or regulated agents).
  • Territoriality refers to both physical and conceptual spaces that can be 'invaded' by agents of differing strategies. Territoriality establishes boundaries within which behaviors will be reinforced or retaliated against depending on prevailing norms. Also, the boundary provides an 'inside' for agents that comply with the norms, and an 'outside' to which they can be expelled if they do not comply.

Chapter 9, The Robustness of Reciprocity.

  • Cooperation can get started by even a small cluster of individuals who are willing to reciprocate cooperation, even in a world where no one else will cooperate.
  • Once cooperation is establish, it protects itself from invasion by non-cooperative strategies.
  • The foundation of cooperation is the durability of the relationship, which allows agents to learn about each other in order to cooperate.

The Cornucopia of the Commons

One Sentence Summary:
Dan Bricklin examines ways to induce a pool of users to contribute to a commons without extra effort, using the architecture of the commons (as in Napster's default to sharing in the way download directories are available) and leveraging user's self-interest.
Disciplines:
Business
Economics
Sociology
Findings:
  • Users must want to use the shared repository, i.e. it should contain things that are of value to them.
  • Adding to the commons must be a "a natural by-product of the user's work" i.e. users should be "adding to the value of the database without doing any extra work."
  • Sharing should be the default.
Keywords:
sharing economy
peer production
open source
hierarchy
communication
Author(s) / Editor(s):
Published in:
O'Reilly and Associates, Inc.
Date:
March 2001
One Paragraph Summary:

Dan Bricklin examines ways to induce a pool of users to contribute to a commons without extra effort, using the architecture of the commons (as in Napster's default to sharing in the way download directories are available) and leveraging user's self-interest. The key to understanding the success of Napster and other file-sharing technologies resides not in their 'peer-to-peer' nature but in the fact that they provide users with access to a database of desirable things and enable people to create a public good in the process of seeking their own interests.

One Page Summary:

Dan Bricklin examines ways to induce a pool of users to contribute to a commons without extra effort, using the architecture of the commons (as in Napster's default to sharing in the way download directories are available) and leveraging user's self-interest. The key to understanding the success of Napster and other file-sharing technologies resides not in their 'peer-to-peer' nature but in the fact that they provide users with access to a database of desirable things and enable people to create a public good in the process of seeking their own interests.

Bricklin identifies three ways to fill a database: organized manual, organized mechanical, and volunteer manual.

CDDB succeeded at motivating volunteer manual data entry because it leveraged the desire for users to have their data in the database so that CDDB-aware programs could access it, for example when a user would insert a CD into their computer.

Bricklin calls this "harnessing the power of individual selfishness."

Napster cleverly avoided manual data entry by automatically indexing anything in the user's 'Shared Music' directory. Thus "storing the copy in the shared music directory [was] a natural by-product of the user's work with the songs."

Sharing is the default. This results in users "adding to the value of the database without doing any extra work."

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