The Wealth of Networks

arh1's picture

i've been reading an incredible book called The Wealth of Networks by Yochai Benkler. the subtitle is "How social production transforms markets and freedom". the title is obviously a reference to Adam Smith's The Wealth of Nations, which is the original "liberal" in "neoliberal" -- the bible of modern free-marketism. Benkler's book is basically an analysis of how the Internet is affecting our economy and modes of production -- an examination of our new "networked information economy" replacing the old "industrial production economy". Free and Open Source Software (like the Drupal content management system that powers dtek.tv and the entire technology stack underneath it) is the poster-child of this new economy.

it's great stuff -- right up my alley, if slow-going. it's really pretty accessible to an interested layman like myself, but gets into some economic theory minutia which can be tough to take, and the language sometimes feels more stilted than necessary, but ah, academia... actually, that's one of the aspects of the book that interests me -- i believe it represents mainstream academia embracing what free software developers, copyright and patent reform advocates, and all manner of radical techies have known for years: that the new ways of collaborative creation/production made possible by the Internet are "legitimate", powerful, and here to stay.

there have been many predecessors, like Lawrence Lessig, but Benkler's book is a serious scholarly tome that should get the attention of theorists and policy-makers for a long time to come. that's how it seems to me anecdotally, anyway ;)

i'm going to try to distill some ongoing notes/quotes here, but i'd also point to the book's wiki, which looks like it includes digestible summaries of each chapter.

arh1's picture

addendum 3: Harvard Study about Copyright Protection

Slashdot pointed me today to this article by Canadian law professor Michael Geist. the article is about a working paper out of Harvard Business School (pdf) arguing that weaker copyright protection is a net benefit for society.

i haven't read the paper yet, but from the article it sounds like it echoes much of Benkler's analysis of the financial/business implications of copyright, and the idea that, though we've been conditioned to think otherwise, less copyright might actually spur more cultural production.

just a guy's picture

Nice work, my friend

Hieb, this book seems to have had a big impact on you. I have ben looking through it, and I like how your subject heads organize the thoughts and quotations. I wonder if you might go a step further and speak specifically about how this book further informs or supports your public conscience--politics, work, etc. The bits about the "new folk culture" and "writable culture," and about the way in which advertisers now try to sell and define as cool the culture that includes their product, whatever their product may be--I especially tuned in there. It is intriguing, but I wonder if there is much sense in any such speculation. As either Postman or Winn (or both) point out, the computer was supposed to come in and close the achievement gap in writing and reading scores--the gap between, to use these words, pre-industrial age technologies scores and industrial age technologies scores. Your comment on the school blog help me develop my own contention: that this "new folk culture," as I understand it anyway, has all the necessary ingredients to support its own speculated impact, but it's hamstrung by the fact that it is a lazy impulse--a habituated will to be distracted, to float and be stirred on the surface of things that leads us to these technologies--we want the TV psychologically and are willing to do only the minumum to get it. I don't know. Why would I think this website is an exception? Well, maybe there is a point there... Hmmm. Talk to me more about it.

arh1's picture

i thought you'd never ask,

i thought you'd never ask, JAG :) i guess the book did make quite an impression on me, as i've been talking about it a lot, with many different people.

i would submit that you're missing the forest for the trees a bit, and are focusing on the distracting, shallow, lazy aspects of Internet communication (sign my Facebook wall!), while (understandably) not tuning in to, and leaving out of the equation, many other aspects.

granted, it's not hard for me to imagine this perspective based on the habits you're seeing from the students in your classroom. and how does their status as the first generation of "digital natives" effect what i'm saying here? not sure, but i'll put that aside for now...

like i mentioned on the blog post you referred to, the Internet provides unprecedented opportunities for new cultural/creative expression, sharing of information, development of social movements, and real political organizing. the barriers of entry for Internet publishing are getting lower and lower, and while overwhelming often enough, the real benefits of having the sum total of human knowledge so readily accessible are staggering. past a certain threshold of access, and with the reality and potential for many technical-political interventions and restrictions still looming large, we are able to share up-to-the-second information across the globe, and outside the dictates of the market and the state. astonishing changes, and a completely new sandbox -- what are you going to build with it?

taking myself as an example, i am making a career out of building with these tools and have (gasp) never logged in to Facebook :) the proportion of time that i spend on the Net giving in to a lazy impulse or will to be distracted compared to that which i spend doing creative, active, and fulfilling work is very small. (though yeah, which of these is this discussion? :) )

or think about media education work as an example -- though it's often the first thing you and i think of, the "protectionist" angle is not the only important one to bring to the kids. far from it! actively helping them construct their own positive, fun, meaningful, and convincing "new media" messages is just as important and rewarding.

Coca Cola creates a TV ad. rewrite it, put in your own logo, add narration about Coke's brutal and criminal labor practices, and publish your new video on the Internet. Coke sends their lawyers after you, but the video has already been downloaded millions of times, replicated, archived, spun-off, republished...

there are countless endeavors only made possible and completely facilitated by the "networked information economy" that are no lazy impulse whatsoever, nor distracted, nor superficial. though like anything else worthwhile, you have to work a bit.

arh1's picture

PS: by chance, i watched a

PS: by chance, i watched a talk by Lawrence Lessig just after my post above (idle, lazy time? :) ) the talk is about "cultural ecology" and touches on a lot of the stuff we're discussing above! you can find it at mediacology.com. (i find some of Lessig's tone and style annoying and distracting, but i like what he's saying.)

just a guy's picture

What are you doing to me?

Hiebor, first let me say that I love how articulate you are on these matters--you truly have made a place for yourself in this arena. I still balk at the role it can play in school. I am not, nor am I likely to ever be sold on the effectiveness of these tools compared to books and pencils--at least at the secondary, and especially at the primary school level. Your exciting possibilities, not unlike everything from district administration tech guru's mouth, presupposes a square foundation of literacy and information processing, which these technologies, studies keep showing, not only fail to produce, but also clearly impede. I am still inclined to argue that as far as the pre-college classroom is concerned, it is best to protect the traditional classroom. My battle is hardly Luddite--I do not mean to burn these things up. No, mine is process. What do you think? Isn't so much of your own thinking and effort with this medium predicated on good old traditional schooling? But I also want to remain honest and open--not religiously against anything. Let me say this--it seems to me that these technophiles who think anything on the screen is good think it's good only because its on the screen, flashy, salable, marketable, and in so doing they undercut the true achievement of teachers and students alike, which is the fact that they can produce something so pretty; and 2--and this applies as much to Postman as to anyone else--I think these people trying to effect change in the schools are merely phantoms in search for their own souls--that is, they are turning to the schools by default--unable to lead as you are, they pretend to try to catch kids up to the lead--they want to prepare us for the 21st century. Have you seed the "Things Shift" video--maybe it's on youtube? It talks about how different the world is from the way it once was, insinuating that if we fail to change with it, we'll all go extinct. It's bogus: 1. if the world, by comparison to the old world, sucks, then our efforts must be to counter these shifts--not ride them out into oblivion; and 2. if the world is truly exciting--and you have me thinking it might very well be--the question of how best to prepare kids for it is answered by how we prepared for the shifts in the first place. The truth of the matter is that we want for our kids what we have always wanted for ou kids: strong well-rounded thinking ability and social comfort and awareness. The way to get that is not set in stone--but it's sure as shit closer to stone than to internet blogs... What you are doing and what Jonah should be doing are totally different questions, don't you think?

arh1's picture

well my initial response to

well my initial response to that can be pretty brief: i'm mostly coming from the perspective of what we can accomplish culturally and our particular moment in history, more so than how to go about teaching kids about it; indeed what i should be doing much more so than what my boy should be doing, especially at his young age. (we're kind of unfairly conflating the Tech Turnoff discussion with the my Wealth of Networks notes here...)

the on-the-ground realities of the classroom teaching side i know very little about, and disagree with little that you're saying. i know how i'm deliberately starting to handle these things with my boy, and have lots of armchair ideas about how it could/should work in the classroom. more on that later, and hopefully we can get RED to chime in...

just a guy's picture

not angry tone--I hope you know

Yes, let's bring RED in. I have trouble not conflating the classroom and these discussions because, like you, I only know what I know (I thought the door was open there when I discovered a few similarities between your posts on the tech turnoff and your notes on The Wealth of Networks, though it is clear enough, by title alone, education is not the primary concern of these discussions--sorry.) That said, I am very happy to be having this conversation: I could use revision and refinement--perhaps even a whole new approach, if its warranted--I need it, if for no other reason, than because I have been delivering my vision now for several years, during which time things have changed and knowledge has grown. In other words, I thought myself on the cutting edge of these things, in as much as they relate to the classroom, and I have been discouraged to see the way in which the district has turned to these questions--both in force and focus. But I am starting to realize that my argument is either old or ineffective to a certain degree and I could sure use a fill-up, if, again, not a whole new approach.

What you are saying is new to me, and exciting, and I am happy, if too much rutted out, to engage you on these ruminations. Let's keep it going.

arh1's picture

addendum 2: altruism or self-interest?

Benkler spends a good deal of time on an issue that i hardly mentioned, if at all, in my quotations below. he talks about how much networked peer production is the result of people simply continuing to do something small and instinctual in a new, easy-to-coordinate medium: giving.

i met someone recently who i just discovered wrote this article on Rock/Paper/Scissors and Game Theory for Popular Science's web site (a site i incidentally did some work on recently :) ).

this quote by the man she was interviewing stuck out to me:

This just shows the strength of the giving feeling in individuals. Giving is one of the strongest drives. We like to be part of a family. We like to be part of a community. You can still argue that it's self-interest. Somehow you've got to serve people's self interests. But one of the big ones is an interest in feeling that you're part of a community.

sounded familiar... and it made me realize, we'll never know if our urge to give is truly altruistic or self-interested, but to the extent that we can never know it, the distinction doesn't matter.

arh1's picture

addendum 1: rms talk on copyright

i saw GNU and Free Software Foundation founder, GPL author, and general nerd-god Richard Stallman (aka rms) speak on copyright in NY a month ago.

he's obviously done some pioneering work on the subject, and rms is known as a copyright radical (not to mention a rather prickly fellow), so it was bound to be an interesting talk.

i wish i'd written this up back when i could still decipher my notes, but here are some highlights...

--

he advocates for reducing both the term and breadth of copyright. term: 10 years from publication. breadth: vary based on three categories...

1) works used to do a practical job (e.g.software and recipes): completely free of copyright

2) works used to tell you what certain people thought (e.g. scientific papers and memoirs): modifications and commercial use covered by copyright

3) art and entertainment: modifications and commercial use covered by copyright for 10 years

according to rms (which many of us in attendance disagreed with), modifying art is "not practically urgent"...

--

how to better support the arts:

1) taxes distributed directly to artists, based on popularity/success (but not in linear proportion to success: avoid stars becoming megarich)

2) voluntary payments: e.g. a "dollar button" on devices that "makes it painless" to donate

--

folks in charge of patents at the WTO "should be tried for murder"

arh1's picture

copyright has shifted out of balance

here's the most concise quote i found on how copyright has shifted way out of the balance it was originally intended to create (a balance, roughly, between incentives to create on the one hand, and public benefit/availability on the other), towards the "commercial producers that rely on property":

Combined with the possibility and existence of technical controls on actual use and the DMCA's [Digital Millenium Copyright Act's] prohibition on circumventing those controls, this means that copyright law has shifted. It existed throughout most of its history as a regulatory provision that reserved certain uses of works for exclusive control by authors, but left other, not explicitly constrained uses free. It has now become a law that gives rights holders the exclusive right to control any computer-mediated use of their works, and captures in its regulatory scope all uses that were excluded from control in prior media.

arh1's picture

death of the recording industry?

the book discusses peer-to-peer networks and the music recording industry quite a bit. here's a quote about musicians, the recording industry, and new digital distribution possibilities:

The industry that grew around the ability to stamp and distribute records divided the revenue structure such that artists have been paid primarily from live public performances and merchandizing. Very few musicians, including successful recording artists, make money from recording royalties. The recording industry takes almost all of the revenues from record and CD sales, and provides primarily promotion and distribution. It does not bear the capital cost of the initial musical creation; artists do. With the declining cost of computation, that cost has become relatively low, often simply a computer owned by artists themselves, much as they own their instruments. Because of this industrial structure, peer-to-peer networks are a genuine threat to displacing the entire recording industry, while leaving musicians, if not entirely unaffected, relatively insulated from the change and perhaps mildly better off. Just as the recording industry stamps CDs, promotes them on radio stations, and places them on distribution chain shelves, p2p networks produce the physical and informational aspects of a music distribution system. However, p2p networks do so collaboratively, by sharing the capacity of their computers, hard drives, and network connections. Filtering and accreditation, or "promotion," are produced on the [pg 426] model that Eben Moglen called "anarchist distribution." Jane's friends and friends of her friends are more likely to know exactly what music would make her happy than are recording executives trying to predict which song to place, on which station and which shelf, to expose her to exactly the music she is most likely to buy in a context where she would buy it. Filesharing systems produce distribution and "promotion" of music in a socialsharing modality. Alongside peer-produced music reviews, they could entirely supplant the role of the recording industry.

arh1's picture

regulatory "hands off" the NIE!

and here's the quote i found that most explicitly refers to the title of the book, and the potential wealth if the right "hands" are kept "off" the NIE.

remember that the gist of Adam Smith's seminal book (as it appears to a layman armed mostly with high school history and wikipedia, anyway!) was that governments should keep their regulatory hands off of the free market (this basic idea, of course, is presently under the most intense scrutiny and criticism for many generations, given the current economic crisis). anyway, here is Benkler's take on why "regulatory abstinence" is needed in the case of the NIE:

In each layer, the policy debate is almost always carried out in local, specific terms. We ask questions like, Will this policy optimize "spectrum management" in these frequencies, or, Will this decrease the number of CDs sold? However, the basic, overarching question that we must learn to ask in all these debates is: Are we leaving enough institutional space for the social economic practices of networked information production to emerge? The networked information economy requires access to a core set of capabilities--existing information and culture, mechanical means to process, store, and communicate new contributions and mixes, and the logical systems necessary to connect them to each other. What nonmarket forms of production need is a core common infrastructure that anyone can use, irrespective of whether their production model is market-based or not, proprietary or not. In almost all these dimensions, the current trajectory of technological economic-social trends is indeed leading to the emergence of such a core common infrastructure, and the practices that make up the networked information economy are taking advantage of open resources.

...

The core common infrastructure appears to be emerging without need for help from a guiding regulatory hand. This may or may not be a stable pattern. It is possible that by some happenstance one or two firms, using one or two critical technologies, will be able to capture and control a bottleneck. At that point, perhaps regulatory intervention will be required. However, from the beginning of legal responses to the Internet and up to this writing in the middle of 2005, the primary role of law has been reactive and reactionary. It has functioned as a point of resistance to the emergence of the networked information economy. It has been used by incumbents from the industrial information economies to contain the risks posed by the emerging capabilities of the networked information environment. What the emerging networked information economy therefore needs, in almost all cases, is not regulatory protection, but regulatory abstinence.

arh1's picture

book summary: why action and policy changes are needed

the book is split into 3 parts. the intro to part 3 has what i found to be the best summary of the whole book. he sums up parts 1 and 2 in one sentence each, then reemphasizes that we need political action and vigilance to ensure the policy and cultural changes needed to realize the potential benefits of the networked information economy. (so if you only read one of this huge list of quotes i'm posting, pick this one!)

the rest of the book discusses the fronts on which these battles are being waged.

Part I of this book offers a descriptive, progressive account of emerging patterns of nonmarket individual and cooperative social behavior, and an analysis of why these patterns are internally sustainable and increase information economy productivity. Part II combines descriptive and normative analysis to claim that these emerging practices offer defined improvements in autonomy, democratic discourse, cultural creation, and justice. I have noted periodically, however, that the descriptions of emerging social practices and the analysis of their potential by no means imply that these changes will necessarily become stable or provide the benefits I ascribe them. They are not a deterministic consequence of the adoption of networked computers as core tools of information production and exchange. There is no inevitable historical force that drives the technological-economic moment toward an open, diverse, liberal equilibrium. If the transformation I describe actually generalizes and stabilizes, it could lead to substantial redistribution of power and money. The twentieth-century industrial producers of information, culture, and communications--like Hollywood, the recording industry, [pg 380] and some of the telecommunications giants--stand to lose much. The winners would be a combination of the widely diffuse population of individuals around the globe and the firms or other toolmakers and platform providers who supply these newly capable individuals with the context for participating in the networked information economy. None of the industrial giants of yore are taking this threat lying down. Technology will not overcome their resistance through an insurmountable progressive impulse of history. The reorganization of production and the advances it can bring in freedom and justice will emerge only as a result of social practices and political actions that successfully resist efforts to regulate the emergence of the networked information economy in order to minimize its impact on the incumbents.

arh1's picture

community and social interactions in the NIE

just one quote from chapter 10, too, which deals with how the NIE affects community and social interactions. the chapter's conclusion offers a summary of much of the discussion and empirical evidence preceding it:

This chapter began with a basic question. While the networked information economy may enhance the autonomy of individuals, does it not also facilitate the breakdown of community? The answer offered here has been partly empirical and partly conceptual.
667

Empirically, it seems that the Internet is allowing us to eat our cake and have it too, apparently keeping our (social) figure by cutting down on the social equivalent of deep-fried dough--television. That is, we communicate more, rather than less, with the core constituents of our organic communities--our family and our friends--and we seem, in some places, also to [pg 376] be communicating more with our neighbors. We also communicate more with loosely affiliated others, who are geographically remote, and who may share only relatively small slivers of overlapping interests, or for only short periods of life. The proliferation of potential connections creates the social parallel to the Babel objection in the context of autonomy--with all these possible links, will any of them be meaningful? The answer is largely that we do, in fact, employ very strong filtering on our Internet-based social connections in one obvious dimension: We continue to use the newly feasible lines of communication primarily to thicken and strengthen connections with preexisting relationships--family and friends. ...

The conceptual answer has been that the image of "community" that seeks a facsimile of a distant pastoral village is simply the wrong image of how we interact as social beings. We are a networked society now--networked individuals connected with each other in a mesh of loosely knit, overlapping, flat connections. This does not leave us in a state of anomie. We are welladjusted, networked individuals; well-adjusted socially in ways that those who seek community would value, but in new and different ways. ...

arh1's picture

justice and development: market-based pharma policy

i only pulled one quote from chapter 9, which discusses the potential for the NIE to improve global justice and development. he's careful to start the chapter with a disclaimer that talking about the "networked information economy" may seem irrelevant at best, even arrogant or obscene, to folks who don't even have access to clean drinking water.

but nevertheless, he discusses ways that many of the changes he's advocating for in the rest of the book -- e.g. unfettered access to information, including agricultural and pharmaceutical knowledge and innovations, all manner of educational tools and the like -- can actually impact justice and development directly and substantially.

as an example, here's the quote that caught my eye, about patents in the market-based pharmaceutical industry (emphasis mine):

To the extent that the United States and Europe are creating a global innovation system that relies on patents and market incentives as its primary driver of research and innovation, these wealthy democracies are, of necessity, choosing to neglect diseases that disproportionately affect the poor. There is nothing evil about a pharmaceutical company that is responsible to its shareholders deciding to invest where it expects to reap profit. It is not immoral for a firm to invest its research funds in finding a drug to treat acne, which might affect 20 million teenagers in the United States, rather than a drug that will cure African sleeping sickness, which affects 66 million Africans and kills about fifty thousand every year. If there is immorality to be found, it is in the legal and policy system that relies heavily on the patent system to induce drug discovery and development, and does not adequately fund and organize biomedical research to solve the problems that cannot be solved by relying solely on market pull. However, the politics of public response to patents for drugs are similar in structure to those that have to do with agricultural biotechnology exclusive rights. There is a very strong patentbased industry--much stronger than in any other patent-sensitive area. The rents from strong patents are enormous, and a rational monopolist will pay up to the value of its rents to maintain and improve its monopoly. The primary potential political push-back in the pharmaceutical area, which does [pg 346] not exist in the agricultural innovation area, is that the exorbitant costs of drugs developed under this system is hurting even the well-endowed purses of developed-world populations. The policy battles in the United States and throughout the developed world around drug cost containment may yet result in a sufficient loosening of the patent constraints to deliver positive side effects for the developing world. However, they may also work in the opposite direction. The unwillingness of the wealthy populations in the developed world to pay high rents for drugs retards the most immediate path to lower-cost drugs in the developing world--simple subsidy of below-cost sales in poor countries cross-subsidized by above-cost rents in wealthy countries.

arh1's picture

new folk culture and tension with the old industrial economy

in the conclusion to chapter 8, he summarizes some thoughts about the new folk culture made possible by the NIE, and the tension with the vested interests of the industrial economy (emphasis mine):

By comparison to the highly choreographed cultural production system of the industrial information economy, the emergence of a new folk culture [pg 300] and of a wider practice of active personal engagement in the telling and retelling of basic cultural themes and emerging concerns and attachments offers new avenues for freedom. It makes culture more participatory, and renders it more legible to all its inhabitants. The basic structuring force of culture is not eliminated, of course. The notion of floating monads disconnected from a culture is illusory. Indeed, it is undesirable. However, the framework that culture offers us, the language that makes it possible for us to make statements and incorporate the statements of others in the daily social conversation that pervades life, is one that is more amenable to our own remaking. We become more sophisticated users of this framework, more self-conscious about it, and have a greater capacity to recognize, challenge, and change that which we find oppressive, and to articulate, exchange, and adopt that which we find enabling. As chapter 11 makes clear, however, the tension between the industrial model of cultural production and the networked information economy is nowhere more pronounced than in the question of the degree to which the new folk culture of the twenty-first century will be permitted to build upon the outputs of the twentieth-century industrial model. In this battle, the stakes are high. One cannot make new culture ex nihilo. We are as we are today, as cultural beings, occupying a set of common symbols and stories that are heavily based on the outputs of that industrial period. If we are to make this culture our own, render it legible, and make it into a new platform for our needs and conversations today, we must find a way to cut, paste, and remix present culture. And it is precisely this freedom that most directly challenges the laws written for the twentieth-century technology, economy, and cultural practice. [pg 301]

arh1's picture

advertisers don't want a writable culture

this gem for media literacy enthusiasts comes from the middle of his chapter on cultural freedom. he's talking about why the vested culture-peddling interests from the old industrial production economy will inherently oppose the networked information economy's moves toward a "writable" and more malleable culture (emphasis mine):

Culture, symbolism, and meaning, as they are tied with marketbased goods, become a major focus of advertising and of demand management. No one who has been exposed to the advertising campaigns of Coca-Cola, Nike, or Apple Computers, as well as practically to any one of a broad range of advertising campaigns over the past few decades, can fail to see that these are not primarily a communication about the material characteristics or qualities of the products or services sold by the advertisers. [pg 290]

They are about meaning. These campaigns try to invest the act of buying their products or services with a cultural meaning that they cultivate, manipulate, and try to generalize in the practices of the society in which they are advertising, precisely in order to shape taste. They offer an opportunity to generate rents, because the consumer has to have this company's shoe rather than that one, because that particular shoe makes the customer this kind of person rather than that kind--cool rather than stuffy, sophisticated rather than common. Neither the theoretical economists nor the marketing executives have any interest in rendering culture transparent or writable. Whether one treats culture as exogenous or as a domain for limiting the elasticity of demand for one's particular product, there is no impetus to make it easier for consumers to see through the cultural symbols, debate their significance, or make them their own. If there is business reason to do anything about culture, it is to try to shape the cultural meaning of an object or practice, in order to shape the demand for it, while keeping the role of culture hidden and assuring control over the careful cultural choreography of the symbols attached to the company.

and, related, a few pages later:

As we see well in the efforts of parents and teachers, advertising agencies and propaganda departments, culture is manipulable, manageable, and a direct locus of intentional action aimed precisely at harnessing its force as a way of controlling the lives of those who inhabit it. At the same time, however, culture is not the barrel of a gun or the chains of a dungeon. There are limits on the degree to which culture can actually control those who inhabit it. Those degrees depend to a great extent on the relative difficulty or ease of seeing through culture, of talking about it with others, and of seeing other alternatives or other ways of symbolizing the possible and the desirable.

arh1's picture

done. networked emotions

i finished this book today. damn. in all, my reading spanned about 9 months, during which time i moved across the country, went through 2 personal crises of a magnitude i've never felt before, and have generally started to build a new life for myself. romance even flowered and withered for me while this book was firmly planted on my various bedside tables.

...

the book is also helping me crystallize my own thinking behind some of the slow movements i've been making in my professional life for years: ways my work overlaps with my politics and intellectual curiosities; striving to fuse avocation and vocation, as my friend Joel pointed out so long ago. in many respects the concept of the "networked information economy" gives shape and credence to vague intuitions and dim projections stirring around in my head 12 years ago in college when i saw my friend shy's web site and said "i want to build one of those".

...

as such, in addition to being full of meaning for me in its own right, the Wealth of Networks by Yochai Benkler will always occupy an emotional, nostalgic spot in my memory.

i am excited to round out my comments here with quotes from the last ~150 pages of the book. this journal will always remain for me, as i move on with my life.

incidentally, i finished the book today at 2:36pm in the Junebug Cafe of Jamaica Plain, Boston. on the top 40 radio station they had playing was an a capella cover of Every Little Thing She Does is Magic, performed by the Mosaic Whispers of Washington University. saludos amigos.

arh1's picture

NIE benefits to public sphere not preordained

looking ahead towards the final part of the book where he explicitly discusses policy related to these massive social/technological/political/economic changes, Benkler offers warnings like this about the potential futures of the networked information economy:

There is, in this story, an enormous degree of contingency and factual specificity. That is, my claims on behalf of the networked information economy as a platform for the public sphere are not based on general claims about human nature, the meaning of liberal discourse, context-independent efficiency, or the benevolent nature of the technology we happen to have stumbled across at the end of the twentieth century. They are instead based on, and depend on the continued accuracy of, a description of the economics of fabrication of computers and network connections, and a description of the dynamics of linking in a network of connected nodes. As such, my claim is not that the Internet inherently liberates. I do not claim that commons-based production of information, knowledge, and culture will win out by [pg 261] some irresistible progressive force. That is what makes the study of the political economy of information, knowledge, and culture in the networked environment directly relevant to policy. ...
Google could become so powerful on the desktop, in the e-mail utility, and on the Web, that it will effectively become a supernode that will indeed raise the prospect of a reemergence of a mass-media model. ...
The zeal to curb peer-to-peer file sharing of movies and music could lead to a substantial redesign of computing equipment and networks, to a degree that would make it harder for end users to exchange information of their own making.

arh1's picture

commercialism and politics in the mass media vs the NIE

in chapter 6, Benkler offers a long critique of the mass media that dominated the public sphere in the industrial production economy, including this concise statement on mass media and politics (emphasis mine). it's a familiar one (takes me back to Manufacturing Consent), but well-stated and worth repeating.

Examples abound, but the basic analytic structure of the claim is fairly simple and consists of three distinct components. First, advertiser-supported media need to achieve the largest audience possible, not the most engaged or satisfied audience possible. This leads such media to focus on lowest-common-denominator programming and materials that have broad second-best appeal, rather than trying to tailor their programming to the true first-best preferences of well-defined segments of the audience. Second, issues of genuine public concern and potential political contention are toned down and structured as a performance between iconic representations of large bodies of opinion, in order to avoid alienating too much of the audience. This is the reemergence of spectacle that Habermas identified in The Transformation of the Public Sphere. The tendency toward lowest-common-denominator programming translates in the political sphere into a focus on fairly well-defined, iconic views, and to avoidance of genuinely controversial material, because it is easier to lose an audience by offending its members than by being only mildly interesting. The steady structuring of the media as professional, commercial, and one way over 150 years has led to a pattern whereby, when political debate is communicated, it is mostly communicated as performance. Someone represents a party or widely known opinion, and is juxtaposed with others who similarly represent alternative widely known views. These avatars of public opinion then enact a clash of opinion, orchestrated in order to leave the media neutral and free of blame, in the eyes of their viewers, for espousing an offensively partisan view. Third, and finally, this business logic often stands in contradiction to journalistic ethic. While there are niche markets for high-end journalism and strong opinion, outlets that serve those markets are specialized. Those that cater to broader markets need to subject journalistic ethic to business necessity, emphasizing celebrities or local crime over distant famines or a careful analysis of economic policy.

in the next chapter, he offers ideas about how the networked information economy might better serve the public sphere:

The networked public sphere is not made of tools, but of social production practices that these tools enable. The primary effect of the Internet on the [pg 220] public sphere in liberal societies relies on the information and cultural production activity of emerging nonmarket actors: individuals working alone and cooperatively with others, more formal associations like NGOs, and their feedback effect on the mainstream media itself. These enable the networked public sphere to moderate the two major concerns with commercial mass media as a platform for the public sphere: (1) the excessive power it gives its owners, and (2) its tendency, when owners do not dedicate their media to exert power, to foster an inert polity. More fundamentally, the social practices of information and discourse allow a very large number of actors to see themselves as potential contributors to public discourse and as potential actors in political arenas, rather than mostly passive recipients of mediated information who occasionally can vote their preferences.

arh1's picture

increased authorship of our own lives

By making it possible for many more diversely motivated and organized individuals and groups to communicate with each other, the emerging model of information production provides individuals with radically different sources and types of stories, out of which we can work to author our own lives. Information, knowledge, and culture can now be produced not only by many more people than could do so in the industrial information economy, but also by individuals and in subjects and styles that could not pass the filter of marketability in the mass-media environment. The result is a proliferation of strands of stories and of means of scanning the universe of potential stories about how the world is and how it might become, leaving individuals with much greater leeway to choose, and therefore a much greater role in weaving their own life tapestry.

arh1's picture

social production is changing the business environment

and concluding Chapter 4 - The Economics of Social Production...

The overarching point is that social production is reshaping the market conditions under which businesses operate. To some of the incumbents of the industrial information economy, the pressure from social production is experienced as pure threat. It is the clash between these incumbents and the new practices that was most widely reported in the media in the first five years of the twenty-first century, and that has driven much of policy making, legislation, and litigation in this area. But the much more fundamental effect on the business environment is that social production is changing the relationship of firms to individuals outside of them, and through this changing the strategies that firms internally are exploring. It is creating new sources of inputs, and new tastes and opportunities for outputs. Consumers are changing into users--more active and productive than the consumers of the [pg 127] industrial information economy. The change is reshaping the relationships necessary for business success, requiring closer integration of users into the process of production, both in inputs and outputs. It requires different leadership talents and foci. ...

arh1's picture

why here? why now?

what exactly is it about this moment in history that is allowing the networked information economy to burst forth? (emphasis mine...)

In combination then, three characteristics make possible the emergence of information production that is not based on exclusive proprietary claims, not aimed toward sales in a market for either motivation or information, and not organized around property and contract claims to form firms or market exchanges. First, the physical machinery necessary to participate in information and cultural production is almost universally distributed in the population of the advanced economies. Certainly, personal computers as capital goods are under the control of numbers of individuals that are orders of magnitude larger than the number of parties controlling the use of massproduction-capable printing presses, broadcast transmitters, satellites, or cable systems, record manufacturing and distribution chains, and film studios and distribution systems. This means that the physical machinery can be put in service and deployed in response to any one of the diverse motivations individual human beings experience. They need not be deployed in order to maximize returns on the financial capital, because financial capital need not be mobilized to acquire and put in service any of the large capital goods typical of the industrial information economy. Second, the primary raw materials in the information economy, unlike the industrial economy, are public goods--existing information, knowledge, and culture. Their actual marginal social cost is zero. Unless regulatory policy makes them purposefully expensive in order to sustain the proprietary business models, acquiring raw materials also requires no financial capital outlay. Again, this means that these raw materials can be deployed for any human motivation. They need not maximize financial returns. Third, the technical architectures, organizational models, and social dynamics of information production and exchange on the Internet have developed so that they allow us to structure the solution to problems--in particular to information production problems--in ways [pg 106] that are highly modular. This allows many diversely motivated people to act for a wide range of reasons that, in combination, cohere into new useful information, knowledge, and cultural goods. These architectures and organizational models allow both independent creation that coexists and coheres into usable patterns, and interdependent cooperative enterprises in the form of peer-production processes.

arh1's picture

non-market motivations for social production

For all of us, there comes a time on any given day, week, and month, every year and in different degrees over our lifetimes, when we choose to act in some way that is oriented toward fulfilling our social and psychological needs, not our market-exchangeable needs. It is that part of our lives and our motivational structure that social production taps, and on which it thrives. There is nothing mysterious about this.
...
What needs to be understood now, however, is under what conditions these many and diverse social actions can turn into an important modality of economic production. When can all these acts, distinct from our desire for [pg 99] money and motivated by social and psychological needs, be mobilized, directed, and made effective in ways that we recognize as economically valuable?

arh1's picture

why social production works

looking at social production from an economics perspective raises 3 questions according to Benkler: what would motivate people to do this; why it would happen at this particular moment in history; and how efficient it might be.

We need to assume no fundamental change in the nature of humanity; [pg 92] we need not declare the end of economics as we know it. We merely need to see that the material conditions of production in the networked information economy have changed in ways that increase the relative salience of social sharing and exchange as a modality of economic production. That is, behaviors and motivation patterns familiar to us from social relations generally continue to cohere in their own patterns. What has changed is that now these patterns of behavior have become effective beyond the domains of building social relations of mutual interest and fulfilling our emotional and psychological needs of companionship and mutual recognition. They have come to play a substantial role as modes of motivating, informing, and organizing productive behavior at the very core of the information economy. And it is this increasing role as a modality of information production that ripples through the rest this book. It is the feasibility of producing information, knowledge, and culture through social, rather than market and 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.

arh1's picture

on intellectual property, copyright and patents

much of the book has to do, in one way or another, with how we should handle policies related to intellectual property in our new networked information economy -- the subject of so much speculation and debate currently.

below is a quick glimpse (emphasis mine) into Benkler's take on that, from chapter 2, "Some Basic Economics of Information Production and Innovation". two key concepts mentioned here are "non/rivalry" -- i.e. food is a rival resource; information is a nonrival resource -- and "on the shoulders of giants" -- referring to a statement by Isaac Newton where he humbly attributes the brunt of his own discoveries to those who came before him.

The implication is that when a country--either one that already has a significant patent system, or a developing nation--increases its patent protection, it slightly decreases the level of investment in innovation by local firms. Going on intuitions alone, without understanding the background theory, this seems implausible--why would inventors or companies innovate less when they get more protection? Once you understand the interaction of nonrivalry and the "on the shoulders of giants" effect, the findings are entirely consistent with theory. Increasing patent protection, both in developing nations that are net importers of existing technology and science, and in developed nations that already have a degree of patent protection, and therefore some nontrivial protection for inventors, increases the costs that current innovators have to pay on existing knowledge more than it increases their ability to appropriate the value of their own contributions. When one cuts through the rent-seeking politics of intellectual property lobbies like the pharmaceutical companies or Hollywood and the recording industry; when one overcomes the honestly erroneous, but nonetheless conscience-soothing beliefs of lawyers who defend the copyright and patent-dependent industries and the judges they later become, the reality of both theory and empirics in the economics of intellectual property is that both in theory and as far as empirical evidence shows, there is remarkably little support in economics for regulating information, knowledge, and cultural production through the tools of intellectual property law.

--

and in the conclusion of the chapter:

The networked information economy has upset the apple cart on the technical, material cost side of information production and exchange. The institutional ecology, the political framework (the lobbyists, the habits of legislatures), and the legal culture (the beliefs of judges, the practices of lawyers) have not changed. They are as they developed over the course of the twentieth century--centered on optimizing the conditions of those commercial firms that thrive in the presence of strong exclusive rights in information and culture. The outcome of the conflict between the industrial information economy and its emerging networked alternative will determine whether we evolve into a permission culture, as Lessig warns and projects, or into a society marked by social practice of nonmarket production and cooperative sharing of information, knowledge, and culture of the type I describe throughout this book, and which I argue will improve freedom and justice in liberal societies.

arh1's picture

still plodding through

still plodding through this... lots of good stuff. i'll try to be more selective in my quotes and offer at least a few words of context with each...

in fact, i'll just offer one quote at the moment, from way back in the introduction. the book's primary call to action, which builds on the last of my previous set of quotes:

This book is offered, then, as a challenge to contemporary liberal democracies. We are in the midst of a technological, economic, and organizational transformation that allows us to renegotiate the terms of freedom, justice, and productivity in the information society. How we shall live in this new environment will in some significant measure depend on policy choices that we make over the next decade or so. To be able to understand these choices, to be able to make them well, we must recognize that they are part of what is fundamentally a social and political choice--a choice about how to be free, equal, productive human beings under a new set of technological and economic conditions. As economic policy, allowing yesterday's winners to dictate the terms of tomorrow's economic competition would be disastrous. As social policy, missing an opportunity to enrich democracy, freedom, and justice in our society while maintaining or even enhancing our productivity would be unforgivable.

just a guy's picture

Sounds fascinating

I need to read the quotations below, but let me just throw this in, in reactin to the first part of your post: it sounds a bit like what I think Chomsky is getting at with Manufacturing Consent. And the second part of what you said, regarding Adam Smith, reminds me that most recently I have heard Chomsky matter-of-factly state that he is a conservative. His social and economic policies are conservative--and yet it is impossible that Sean Hannity would ever want to interview him.

Anyway, most of the rest you said I do not unerstand. My guess is that you are saying what I think you have been kind of saying for years--especially regarding the music world--this here internet thing is transforming shit--McCluhan like. And you seem to be excited about the possiblities of that--as though some "real" change, such as some of us might hope Obama could usher in, may be at hand--gradual, no doubt, like watching a kid grow, only slower--but you know what I mean, like how Jonah surprises you every now and again--or how my little freshman become giant seniors who could beat me into a pulp--but slower, much slower--definite, yes, happening right underneath our noses, and yet we can only speculate about its effects, and therefore be mostly wrong about them. I am finding myself approaching this "tome" as one such work of speculation. What do you think?

just a guy is Joey D

arh1's picture

it's really a scholarly

it's really a scholarly economics book, but to look at the economics you have to consider the broader social, cultural, political changes that we've unleashed with the computer network.

"peer production". the fact that folks all over the world can collaborate very efficiently on whatever their hearts desire, often outside of the standard market- or state-controlled paradigms... that's revolutionizing how we produce and share information, knowledge, culture.

the software that runs this web site, Drupal, is a great example. like all other Free and Open Source Software it's created collaboratively by a sprawling, self-organized group of volunteers and quasi-professionals. it's available for free, but that means free as in speech (also happens to be free as in beer). (just posted about this on the Dtek work blog.)

here's the Drupal source code. if you or i have the know-how we can contribute to it. (and "know-how" can be as simple as being able to write some documentation that helps other folks use the software...)

meh, rambling, but it's really exciting and fascinating stuff...

PS: note that "liberal" a al Adam Smith refers strictly to economics as i understand it (liberal, as in hands-off by the government), so shouldn't be confused with the "liberal" vs "conservative" labels slapped around in our political discourse.

arh1's picture

here are a few quotes to

here are a few quotes to start me off on my journaling... (and btw, my task is made much easier by the fact that the entire book is online under a creative commons license! but it sure is nice to have the paper, bound softcover book right beside me.)

The first part of this book is dedicated to establishing a number of basic economic observations. Its overarching claim is that we are seeing the emergence of a new stage in the information economy, which I call the "networked information economy." It is displacing the industrial information economy that typified information production from about the second half of the nineteenth century and throughout the twentieth century. What characterizes the networked information economy is that decentralized individual action--specifically, new and important cooperative and coordinate action carried out through radically distributed, nonmarket mechanisms that do not depend on proprietary strategies--plays a much greater role than it did, or could have, in the industrial information economy. The catalyst for this change is the happenstance of the fabrication technology of computation, and its ripple effects throughout the technologies of communication and storage. The declining price of computation, communication, and storage have, as a practical matter, placed the material means of information and cultural production in the hands of a significant fraction of the world's population--on the order of a billion people around the globe. The core distinguishing feature of communications, information, and cultural production since the mid-nineteenth century was that effective communication spanning the ever-larger societies and geographies that came to make up the relevant political and economic units of the day required ever-larger investments of physical capital. Large-circulation mechanical presses, the telegraph [pg 4] system, powerful radio and later television transmitters, cable and satellite, and the mainframe computer became necessary to make information and communicate it on scales that went beyond the very local. Wanting to communicate with others was not a sufficient condition to being able to do so. As a result, information and cultural production took on, over the course of this period, a more industrial model than the economics of information itself would have required. The rise of the networked, computer-mediated communications environment has changed this basic fact. The material requirements for effective information production and communication are now owned by numbers of individuals several orders of magnitude larger than the number of owners of the basic means of information production and exchange a mere two decades ago.

--

I suggest that the networked information environment offers us a more attractive cultural production system in two distinct ways: (1) it makes culture more transparent, and (2) it makes culture more malleable. Together, these mean that we are seeing the emergence of a new folk culture--a practice that has been largely suppressed in the industrial era of cultural production--where many more of us participate actively in making cultural moves and finding meaning in the world around us. These practices make their practitioners better "readers" of their own culture and more self-reflective and critical of the culture they occupy, thereby enabling them to become more self-reflective participants in conversations within that culture. This also allows individuals much greater freedom to participate in tugging and pulling at the cultural creations of others, "glomming on" to them, as Balkin puts it, and making the culture they occupy more their own than was possible with mass-media culture. In these senses, we can say that culture is becoming more democratic: self-reflective and participatory.

--

The first methodological choice concerns how one should treat the role of technology in the development of human affairs. The kind of technological determinism that typified Lewis Mumford, or, specifically in the area of communications, Marshall McLuhan, is widely perceived in academia today [pg 17] as being too deterministic, though perhaps not so in popular culture. The contemporary effort to offer more nuanced, institution-based, and politicalchoice-based explanations is perhaps best typified by Paul Starr's recent and excellent work on the creation of the media. While these contemporary efforts are indeed powerful, one should not confuse a work like Elizabeth Eisenstein's carefully argued and detailed The Printing Press as an Agent of Change, with McLuhan's determinism. Assuming that technologies are just tools that happen, more or less, to be there, and are employed in any given society in a pattern that depends only on what that society and culture makes of them is too constrained. A society that has no wheel and no writing has certain limits on what it can do. Barry Wellman has imported into sociology a term borrowed from engineering--affordances. 1 Langdon Winner called these the "political properties" of technologies. 2 An earlier version of this idea is Harold Innis's concept of "the bias of communications." 3 In Internet law and policy debates this approach has become widely adopted through the influential work of Lawrence Lessig, who characterized it as "code is law." 4
47

The idea is simple to explain, and distinct from a naïve determinism. Different technologies make different kinds of human action and interaction easier or harder to perform. All other things being equal, things that are easier to do are more likely to be done, and things that are harder to do are less likely to be done. All other things are never equal. That is why technological determinism in the strict sense--if you have technology "t," you should expect social structure or relation "s" to emerge--is false. Ocean navigation had a different adoption and use when introduced in states whose land empire ambitions were effectively countered by strong neighbors--like Spain and Portugal--than in nations that were focused on building a vast inland empire, like China. Print had different effects on literacy in countries where religion encouraged individual reading--like Prussia, Scotland, England, and New England--than where religion discouraged individual, unmediated interaction with texts, like France and Spain. This form of understanding the role of technology is adopted here. Neither deterministic nor wholly malleable, technology sets some parameters of individual and social action. It can make some actions, relationships, organizations, and institutions easier to pursue, and others harder. In a challenging environment--be the challenges natural or human--it can make some behaviors obsolete by increasing the efficacy of directly competitive strategies. However, within the realm of the feasible--uses not rendered impossible by the adoption or rejection of a technology--different patterns of adoption and use [pg 18] can result in very different social relations that emerge around a technology. Unless these patterns are in competition, or unless even in competition they are not catastrophically less effective at meeting the challenges, different societies can persist with different patterns of use over long periods. It is the feasibility of long-term sustainability of different patterns of use that makes this book relevant to policy, not purely to theory. The same technologies of networked computers can be adopted in very different patterns. There is no guarantee that networked information technology will lead to the improvements in innovation, freedom, and justice that I suggest are possible. That is a choice we face as a society. The way we develop will, in significant measure, depend on choices we make in the next decade or so.