Peer to Peer

As a new mode of production, governance, and property

The P2P ‘Tipping Point’The P2P ‘Tipping Point’ ““The most profound finding of the 2006 Edelman Trust Barometer is that in The most profound finding of the 2006 Edelman Trust Barometer is that in

six of the 11 countries surveyed, the “person like yourself or your peer” is six of the 11 countries surveyed, the “person like yourself or your peer” is seen as the most credible spokesperson about a company and among the seen as the most credible spokesperson about a company and among the top three spokespeople in every country surveyed. This has advanced top three spokespeople in every country surveyed. This has advanced steadily over the past three years.steadily over the past three years.

In the US, for example, the “person like yourself or your peer” was only In the US, for example, the “person like yourself or your peer” was only trusted by 22% of respondents as recently as 2003, while in this year’s trusted by 22% of respondents as recently as 2003, while in this year’s study, 68% of respondents said they trusted a peer. Contrast that to the study, 68% of respondents said they trusted a peer. Contrast that to the CEO, who ranks in the bottom half of credible sources in all countries, at CEO, who ranks in the bottom half of credible sources in all countries, at 28% trust in the US, near the level of lawyers and legislators. In China, the 28% trust in the US, near the level of lawyers and legislators. In China, the “person like yourself or your peer” is trusted by 54% of respondents, “person like yourself or your peer” is trusted by 54% of respondents, compared to the next highest spokesperson, a doctor, at 43%.compared to the next highest spokesperson, a doctor, at 43%.

"only 13% of consumers say they buy products because of their ads. "only 13% of consumers say they buy products because of their ads. Contrast that to 60% of small business owners in North America that say Contrast that to 60% of small business owners in North America that say they use peer recommendations to make their buying decisions and over they use peer recommendations to make their buying decisions and over 70% of 18-35 year olds who report the same for their media purchases."70% of 18-35 year olds who report the same for their media purchases."

Understanding P2PUnderstanding P2P Part 1: Understanding P2PPart 1: Understanding P2P

Part Two:P2P Business ModelsPart Two:P2P Business Models

Part Three: P2P and the MarketPart Three: P2P and the Market

Part Four: Civilizational Politics of P2PPart Four: Civilizational Politics of P2P

1. Understanding P2P1. Understanding P2P P2P is the relational dynamic at work in P2P is the relational dynamic at work in

distributed networksdistributed networks

Hierarchical, de-centralized networks, Hierarchical, de-centralized networks, distributed networksdistributed networks

Complexity and HierarchyComplexity and Hierarchy

Levy: from the molar to the Levy: from the molar to the molecularmolecular

ArchaicArchaic MolarMolar MolecularMolecularLifeLife NaturalNatural

SelectionSelection(natural time)(natural time)

ArtificialArtificialSelectionSelection(generationa(generational time)l time)

Genetic Genetic splicingsplicing(real-time)(real-time)

MatterMatter MechanicalMechanical(outside)(outside)

Thermo-Thermo-DynamicDynamic(Warming)(Warming)

NanotechNanotech(cold)(cold)

InformationInformation SomaticSomatic(co-presence)(co-presence)

MediaticMediatic(mass)(mass)

DigitalDigital

Human Human GroupsGroups

OrganicOrganic Organiza-Organiza-tionaltional

Self-Self-organizedorganized

Usage of P2P depends on Usage of P2P depends on consciousnessconsciousness

P2P as technological infrastructureP2P as technological infrastructure

Web 2.0 TimelineWeb 2.0 Timeline

P2P as Technological InfrastructureP2P as Technological Infrastructure Point to Point infrastructures for P2P Point to Point infrastructures for P2P

communication: internet, web, IM, filesharing, communication: internet, web, IM, filesharing, grid computinggrid computing

A Read/Write infrastructure for autonomous A Read/Write infrastructure for autonomous publication and distribution: blogging, podcasting, publication and distribution: blogging, podcasting, webcastingwebcasting

An infrastructure for glocal cooperation: Wiki’s, An infrastructure for glocal cooperation: Wiki’s, Social Software, Web 2.0., creating the capacity Social Software, Web 2.0., creating the capacity to GLOBALLY SCALE GRANULAR PRODUCTIONto GLOBALLY SCALE GRANULAR PRODUCTION

Web 2.0 and P2PWeb 2.0 and P2P In Web 2.0, the value is created by the In Web 2.0, the value is created by the

user/participants: The Web 2.0 unlocks the user/participants: The Web 2.0 unlocks the ‘wisdom of crowds’‘wisdom of crowds’

Web 2.0 tools enable that participation: The Web Web 2.0 tools enable that participation: The Web 2.0 renders data independent of the application; 2.0 renders data independent of the application; and applications independent of the program: and applications independent of the program: mash-ups and open API’smash-ups and open API’s

Web 2.0 business models fund the participation Web 2.0 business models fund the participation through an attention economy, BUT, ‘there’s a through an attention economy, BUT, ‘there’s a price to be paid’ (implicit social contract)price to be paid’ (implicit social contract)

Web 2.0 Participatory AspectsWeb 2.0 Participatory Aspects Must allow for cooperation: blogs, wiki’s, Must allow for cooperation: blogs, wiki’s,

forumforum Must allow for ‘participation capture’ and Must allow for ‘participation capture’ and

automatic archivingautomatic archiving Must allow aggregate rating & reputation Must allow aggregate rating & reputation

schemesschemes Must allow affinity searching and Must allow affinity searching and

recommendation schemesrecommendation schemes Must allow presentiality (buddy lists)Must allow presentiality (buddy lists) Must allow cooperative contextuality Must allow cooperative contextuality

building: social bookmarking, taggingbuilding: social bookmarking, tagging Must allow remixing, re-use of content and Must allow remixing, re-use of content and

services: widgets, mash-upsservices: widgets, mash-ups Web 2.0’s semi-opennessWeb 2.0’s semi-openness

P2P Social ProcessesP2P Social Processes 1. The ability to produce in common: Peer 1. The ability to produce in common: Peer

Production as a third mode of productionProduction as a third mode of production

2. The ability by participants to manage 2. The ability by participants to manage distributed projects by themselves: Peer distributed projects by themselves: Peer Governance as a third mode of governanceGovernance as a third mode of governance

3. The ability to protect the common 3. The ability to protect the common project from private appropriation: Peer project from private appropriation: Peer Property as a third mode of non-Property as a third mode of non-exclusionary propertyexclusionary property

“….People would experience others as equals in the sense of their being both superior and inferior to themselves in varying skills and areas of endeavor (intellectually, emotionally, artistically, mechanically, interpersonally, and so forth), but with none of those skills being absolutely higher or better than others…”Jorge Ferrer

The Revolution of Equipotentiality

Characteristics of Peer Production (1)Characteristics of Peer Production (1)

No division of labour, but distribution of No division of labour, but distribution of labour: labour: equipotentialityequipotentiality

No exclusivity, but inclusivity: anti-No exclusivity, but inclusivity: anti-credentialismcredentialism

No composite tasks, but granular tasks: self-No composite tasks, but granular tasks: self-selectionselection

No products, but always unfinished No products, but always unfinished ‘artefacts’‘artefacts’

Characteristics of Peer Production (2)Characteristics of Peer Production (2)

No a priori, but a posteriori No a priori, but a posteriori distributed control: communal distributed control: communal validation (collective choice systems, validation (collective choice systems, algorithms)algorithms)

No panoptism, but holoptism: No panoptism, but holoptism: participation capture, usage is participation capture, usage is productionproduction

Not owned, but shared contentNot owned, but shared content

Conditions for SuccesConditions for Succes Benkler: 3 characteristics of successul group efforts:Benkler: 3 characteristics of successul group efforts:

1) must be modular. That is, they must be divisible into components, or 1) must be modular. That is, they must be divisible into components, or modules, each of which can be produced independently of the production of modules, each of which can be produced independently of the production of the others. This enables production to be incremental and asynchronous, the others. This enables production to be incremental and asynchronous, pooling the efforts of different people, with different capabilities, who are pooling the efforts of different people, with different capabilities, who are available at different times." available at different times."

2.) “For a peer production process to pool successfully a relatively large 2.) “For a peer production process to pool successfully a relatively large number of contributors, the modules should be predominately fine–grained, number of contributors, the modules should be predominately fine–grained, or small size. This allows the project to capture contributions from large or small size. This allows the project to capture contributions from large numbers of contributors whose motivation levels will not sustain anything numbers of contributors whose motivation levels will not sustain anything more than small efforts toward the project ...." more than small efforts toward the project ...."

3.) “... a successful peer production enterprise must have low–cost 3.) “... a successful peer production enterprise must have low–cost integration, which includes both quality control over the modules and a integration, which includes both quality control over the modules and a mechanism for integrating the contributions into the finished product, mechanism for integrating the contributions into the finished product, while defending “itself against incompetent or malicious contributorswhile defending “itself against incompetent or malicious contributors. .

Why is Peer Production Emerging Why is Peer Production Emerging Now?Now?

Yochai Benkler advances a powerful hypothesis, that Yochai Benkler advances a powerful hypothesis, that lowering the capital requirements of information production lowering the capital requirements of information production

1. reduces the value of proprietary strategies and makes 1. reduces the value of proprietary strategies and makes public, shared information more important, public, shared information more important,

2. encourages a wider range of motivations to produce, 2. encourages a wider range of motivations to produce, thus demoting supply-and-demand from prime motivator to thus demoting supply-and-demand from prime motivator to one-of-many, and one-of-many, and

3. allows large-scale, cooperative information production 3. allows large-scale, cooperative information production efforts that were not possible before, from open-source efforts that were not possible before, from open-source software, to search engines and encyclopedias, to software, to search engines and encyclopedias, to massively multi-player online games. massively multi-player online games.

Peer Governance as 3Peer Governance as 3rdrd modality modalityCentralizedCentralized

HierarchyHierarchy

DecentralizedDecentralized

HeterarchyHeterarchy

DistributedDistributed

AutonomyAutonomyEconomicsEconomics Centralized Centralized

PlanningPlanningMarketMarket Peer ProductionPeer Production

PoliticsPolitics Absolute Absolute monarchymonarchy

Separation of Separation of powerspowers

Peer Peer GovernanceGovernance

PropertyProperty Collective StateCollective State Private Private ExclusionaryExclusionary

Common Common Inclusionary Inclusionary Peer PropertyPeer Property

Conclusion: Conclusion: P2P is P2P is a a third modethird mode of production, of production, governance, and propertygovernance, and property

The Evolution of Hierarchy (1)The Evolution of Hierarchy (1) Degrees of Moral Degrees of Moral InsightInsight

Relationship Relationship between hierarchy, between hierarchy, cooperation, cooperation, autonomyautonomy

PremodernPremodern no rights of political no rights of political participation participation

Hierarchy defines, controls Hierarchy defines, controls and constrains co-operation and constrains co-operation and autonomyand autonomy

Early ModernEarly Modern political participation political participation through representation through representation

Hierarchy empowers a Hierarchy empowers a measure of co-operation measure of co-operation and autonomy in the and autonomy in the political sphere onlypolitical sphere only

Late ModernLate Modern political representation political representation with varying degrees of with varying degrees of wider participationwider participation

Hierarchy empowers a Hierarchy empowers a measure of co-operation measure of co-operation and autonomy in the and autonomy in the political sphere and in political sphere and in varying degrees in other varying degrees in other spheresspheres

P2P EraP2P Era equipotential rights of equipotential rights of participation of everyone in participation of everyone in every fieldevery field

The sole role of hierarchy The sole role of hierarchy is in its spontaneous is in its spontaneous emergence in the initiation emergence in the initiation and continuous flowering of and continuous flowering of autonomy-in-co-operation autonomy-in-co-operation in all spheres of human in all spheres of human endeavorendeavor

by John Heron

Evolution of Hierarchy (2): PowerEvolution of Hierarchy (2): Power Premodern era: custom and force:Premodern era: custom and force:

“ “Make die, and let live”Make die, and let live”

Early modern era: disciplinary societiesEarly modern era: disciplinary societies “ “Make live and let die”Make live and let die”

Late modern era: control societiesLate modern era: control societies““control the desire; a posteriori control, control the desire; a posteriori control, the metaphor of the elastic”the metaphor of the elastic”

P2P era: reputation societies?P2P era: reputation societies?

Evolution of Hierarchy (2): PowerEvolution of Hierarchy (2): PowerPeriodPeriod Machine Machine DatesDates DiagramDiagram ManagerManager ConsciousnessConsciousness

(Agency of)(Agency of)

Sovereign Sovereign SocietySociety(make die,(make die,Let live)Let live)

MechanicalMechanical 17571757 CentralizationCentralization HierarchyHierarchy MonarchyMonarchy

DisciplinaryDisciplinarySocietySociety(let die, (let die, make live)make live)

ThermodynaThermodyna-mics-mics

18441844(telegraph)(telegraph)

DecentralizationDecentralization BureaucracyBureaucracy Separation/Separation/balance of powersbalance of powers

Control Control SocietySociety

CyberneticsCybernetics(computers)(computers)

19541954 DistributionDistribution ProtocolProtocol Organized civil Organized civil society (NGO)society (NGO)

Collective Collective IntelligenceIntelligenceSocietySociety

Internet/WebInternet/Web 19941994 P2PP2P TransparencyTransparency Peer CirclesPeer Circles

Evolution of CooperationEvolution of Cooperation“it’s no longer about incentives, but about “it’s no longer about incentives, but about

removing impediments”removing impediments”Cooperation &Cooperation &MotivationMotivationFormatsFormats

Game Game TypologyTypology

Quality of Quality of CooperationCooperation

Pre-modern Pre-modern (feudal, (feudal, imperial)imperial)

AdversarialAdversarial

Extrinsic negativeExtrinsic negative

Zero Sum:Zero Sum:Win-LoseWin-Lose““Power GamePower Game””

Low,Low,1+1<21+1<2

Modern Modern (market, (market, industrial)industrial)

NeutralNeutral

Extrinsic positiveExtrinsic positive

Zero Sum:Zero Sum:Win-win: DrawWin-win: Draw““Money GameMoney Game””

Average,Average,1+1=21+1=2

P2P eraP2P era SynergisticSynergistic

Intrinsic positiveIntrinsic positive

The 4 winsThe 4 wins““Wisdom GameWisdom Game””

High,High,1+1>21+1>2

Time frameTime frameTypology =>Typology =>

P2P as a new way of workingP2P as a new way of working

A few people do all A few people do all the workthe work

Many people do a Many people do a little of the worklittle of the work

You have to pay all of You have to pay all of themthem

You don’t have to payYou don’t have to paymost of themmost of them

It’s hard to get It’s hard to get involvedinvolved

It’s easy to get It’s easy to get involvedinvolved

Support from people Support from people you knowyou know

Support from a legion Support from a legion of strangersof strangers

Typology of Peer GovernanceTypology of Peer Governance 1. The forms of peer governance of open/free communities and 1. The forms of peer governance of open/free communities and

peer production groups: adhocracypeer production groups: adhocracy

2. The forms of governance/ownership/income distribution for the 2. The forms of governance/ownership/income distribution for the derived and monetizable service and market-oriented production derived and monetizable service and market-oriented production models that derive from commons-related projects (formal modes models that derive from commons-related projects (formal modes of capital and IP ownership)of capital and IP ownership)

3. Choice from wide selection of governance and institutional 3. Choice from wide selection of governance and institutional formats for peer projects. Plug-and-play management modelsformats for peer projects. Plug-and-play management models

4. Political governance models for the whole of society that are 4. Political governance models for the whole of society that are inspired by peer to peer models or principles: peer governance inspired by peer to peer models or principles: peer governance supplements and informs/re-forms representative democracysupplements and informs/re-forms representative democracy

5. Political theories and movements inspired by the P2P ethos5. Political theories and movements inspired by the P2P ethos

KEY ISSUE: boundary between peer governance and KEY ISSUE: boundary between peer governance and ‘representational’ democratic rules‘representational’ democratic rules

Characteristics of P2P HierarchyCharacteristics of P2P Hierarchy Usually consists of a core leadership embodying the original Usually consists of a core leadership embodying the original

aims of the project, sometimes - the ‘benevolent dictator’aims of the project, sometimes - the ‘benevolent dictator’• Linux: coders – trusted Lieutenants – Linus TorvaldsLinux: coders – trusted Lieutenants – Linus Torvalds• Wikipedia: contributors – core editors – Jimmy WalesWikipedia: contributors – core editors – Jimmy Wales

Teams are led by flexible meritocratic leaders: jazz band Teams are led by flexible meritocratic leaders: jazz band logiclogic

Principle of non-dependence or reverse dependencePrinciple of non-dependence or reverse dependence

Large projects are led by a non-profit foundation - Large projects are led by a non-profit foundation - possibility of corporate spin-offspossibility of corporate spin-offs

How To Spot A Successful Open How To Spot A Successful Open Source ProjectSource Project

Community: Community: A handful of lead developers, a large body of contributors, and a substantial--or at A handful of lead developers, a large body of contributors, and a substantial--or at least motivated--user group offering ideas.least motivated--user group offering ideas.

Disruptive goals: Disruptive goals: Does something notably better than commercial code. Free isn't enough.Does something notably better than commercial code. Free isn't enough.

A benevolent dictator: A benevolent dictator: Leader who can inspire and guide developers, asking the right questions Leader who can inspire and guide developers, asking the right questions and letting only the right code in.and letting only the right code in.

Transparency: Transparency: Decisions are made openly, with threads of discussion, active mailing list, and Decisions are made openly, with threads of discussion, active mailing list, and negative and positive comments aired.negative and positive comments aired.

Civility: Civility: Strong forums police against personal attacks or niggling issues, focus on big goals.Strong forums police against personal attacks or niggling issues, focus on big goals.

Documentation: Documentation: What good's a project that can't be implemented by those outside its What good's a project that can't be implemented by those outside its development?development?

Employed developers: Employed developers: The key developers need to work on it full time.The key developers need to work on it full time.

A clear license: A clear license: Some are very business friendly, others clear as mud.Some are very business friendly, others clear as mud.

Commercial support: Commercial support: Companies need more than email support from volunteers. Is there a solid Companies need more than email support from volunteers. Is there a solid company employing people you can call?company employing people you can call?

What with the Power Law?What with the Power Law? The Power LawThe Power Law

• "In systems where many people are free to choose between many "In systems where many people are free to choose between many options, a small subset of the whole will get a disproportionate amount options, a small subset of the whole will get a disproportionate amount of traffic (or attention, or income), even if no members of the system of traffic (or attention, or income), even if no members of the system actively work towards such an outcome. The very act of choosing, actively work towards such an outcome. The very act of choosing, spread widely enough and freely enough, creates a power law spread widely enough and freely enough, creates a power law distribution." distribution."

The Dunbar NumberThe Dunbar Number

Counteracting the Power Law?Counteracting the Power Law?

• It does not always apply (Krebs studies)It does not always apply (Krebs studies)• Open communities show better spreadOpen communities show better spread• Knowing networks can be designed to foster diversity, autonomy, Knowing networks can be designed to foster diversity, autonomy,

opennessopenness• Towards Value-conscious designTowards Value-conscious design

Peer PropertyPeer Property Universal common property regimes Universal common property regimes

are different from private property are different from private property and public collective propertyand public collective property

Individual authorship + share-alike + Individual authorship + share-alike + free distributed accessfree distributed access

Examples: 1) Creative Commons for Examples: 1) Creative Commons for individual expression and sharing; 2) individual expression and sharing; 2) GPL for creations of ‘Commons’GPL for creations of ‘Commons’

Physical vs. Information CommonsPhysical vs. Information Commons

Traditional Traditional CommonsCommons

Information Information CommonsCommons

Type of Type of ResourceResource

RivalRival Non-rival &Non-rival &Anti-rivalAnti-rival

ScopeScope LocalLocal Non-localNon-local

ActorsActors Territorial Territorial GroupsGroups

Global Affinity Global Affinity GroupsGroups

GovernanceGovernance CommunitiesCommunities Cyber Cyber CollectivesCollectives

The Circulation of the CommonThe Circulation of the Common Peer production needs open and free access to the raw material Peer production needs open and free access to the raw material

for its production: open/free paradigm and movementsfor its production: open/free paradigm and movements

Peer Governance is the participatory process for the production Peer Governance is the participatory process for the production of the common: the participatory/cooperation paradigms and of the common: the participatory/cooperation paradigms and movementsmovements

• ““when costs of participation are low enough, any when costs of participation are low enough, any motivation may be sufficient to lead to a motivation may be sufficient to lead to a contribution.”contribution.”

Peer Property uses new legal and institutional formats to protect Peer Property uses new legal and institutional formats to protect its production: the Commons-based paradigms and movementsits production: the Commons-based paradigms and movements

The Common Property format creates open/free raw material: The Common Property format creates open/free raw material: the viral circle spirals onwardthe viral circle spirals onward

Part Two: P2P Business ModelsPart Two: P2P Business Models

PRECONDITIONS FOR PEER PRODUCTION:PRECONDITIONS FOR PEER PRODUCTION:

• Abundance/Surplus/Distribution of intellectAbundance/Surplus/Distribution of intellect

• Abundance/Distribution of the means of information Abundance/Distribution of the means of information production and sharingproduction and sharing

• Lowering of ‘need for capital’, which becomes a posteriori, Lowering of ‘need for capital’, which becomes a posteriori, not a priori condition for success; entrepreneurship is not a priori condition for success; entrepreneurship is divorcing from capitalismdivorcing from capitalism

• Conclusion: the treshold of participation, i.e. the capability Conclusion: the treshold of participation, i.e. the capability to bypass centralized capital outlays is diminishing in to bypass centralized capital outlays is diminishing in human, physical and financial capitalhuman, physical and financial capital

Why P2P will growWhy P2P will growImmaterial productionImmaterial production Material productionMaterial production

For Profit

For Benefit

Conditions for expansion of Conditions for expansion of ‘physical’ peer production‘physical’ peer production

The ‘distribution of everything’: further The ‘distribution of everything’: further distributive advances in financial and industrial distributive advances in financial and industrial capitalcapital• Desktop manufacturing, fabbing, multi-purpose Desktop manufacturing, fabbing, multi-purpose

machinery, implications of nanotech/biotech for machinery, implications of nanotech/biotech for distributed productiondistributed production

Separating the design and material production Separating the design and material production phase of the industrial process: open design phase of the industrial process: open design communities with built-only marketscommunities with built-only markets

Finding integrated processes for the physical, Finding integrated processes for the physical, logical, and digital ‘commons’ logical, and digital ‘commons’ (e.g. Semapedia, (e.g. Semapedia, German White Bicycle program, Bookcrossings)German White Bicycle program, Bookcrossings)

Portfolio

DifferentiatedValue

Free

Open

Paid

Closed

No Source Code IncludedNo Charge for Software

No Source Code IncludedCharge for Software

Includes Source CodeCharge for Software

Source Code IncludedNo Charge for Software

Striking a Critical Balance betweenStriking a Critical Balance betweenGiving It Away and Making Money…Giving It Away and Making Money…

Gratis

$$$

AssetsPractices

CommonValue

…And Utilizing a Sound Business Model to Stay on Track

User Innovation 1User Innovation 1 The Democratization of Innovation means that users of products The Democratization of Innovation means that users of products

and services, both firms and individual users, are increasingly able and services, both firms and individual users, are increasingly able to develop what they need for themselves.to develop what they need for themselves.

Manufactured-Innovation means that firms develop innovations at Manufactured-Innovation means that firms develop innovations at private expense, then sell it.private expense, then sell it.

User-Innovation means that lead users develop innovations that User-Innovation means that lead users develop innovations that they need, then make it freely available. Lead users foreshadow a they need, then make it freely available. Lead users foreshadow a more general demand. But the concept should not obscure the more general demand. But the concept should not obscure the fact that many users innovate, and that such innovation is fact that many users innovate, and that such innovation is distributed amongst different players offer incremental parts of distributed amongst different players offer incremental parts of the solution.the solution.

Commercialisation phase should not obscure the fact that user Commercialisation phase should not obscure the fact that user innovation communities can bypass manufacturers altogether. innovation communities can bypass manufacturers altogether. Example: Kite-building communities; Some firms are moving to Example: Kite-building communities; Some firms are moving to 'build-only' formats, leaving innovation to the user communities.'build-only' formats, leaving innovation to the user communities.

The User Innovation CycleThe User Innovation Cycle 1) individual user develops innovation 1) individual user develops innovation

• invention, prototyping phaseinvention, prototyping phase

2) user diffuses innovation through networked media 2) user diffuses innovation through networked media • information diffusion phaseinformation diffusion phase

3) a community forms around it and develops a working prototype 3) a community forms around it and develops a working prototype • pre-commercial replication phasepre-commercial replication phase

4) a manufacturer may develop a commercial version adding some features 4) a manufacturer may develop a commercial version adding some features • commercial phasecommercial phase

Examples: Examples: email, mountain bike, sports bra, desktop publishing, Examples: Examples: email, mountain bike, sports bra, desktop publishing, Gatorade, white-out liquidGatorade, white-out liquid

The Laws of Asymmetric The Laws of Asymmetric CompetitionCompetition

1. In a competition between a for-profit 1. In a competition between a for-profit entity with closed proprietary strategies, entity with closed proprietary strategies, and a for-benefit institution working with a and a for-benefit institution working with a community and a commons, the latter will community and a commons, the latter will tend to win outtend to win out

2. In a competition between for profit 2. In a competition between for profit companies, those using open/free, companies, those using open/free, participatory, and commons oriented participatory, and commons oriented strategies will tend to win outstrategies will tend to win out

Participation as a competitive Participation as a competitive advantageadvantage

““Free”, as in free beer, as a competitive Free”, as in free beer, as a competitive advantageadvantage

Open source as a competitive advantageOpen source as a competitive advantage Open participation as a competitive Open participation as a competitive

advantageadvantage Co-evolving with a commons as a Co-evolving with a commons as a

competitive advantagecompetitive advantage From Walled Gardens to Community From Walled Gardens to Community

Switching CostsSwitching Costs

Mixing Openness and ClosednessMixing Openness and Closedness

Joe West:Joe West:

““in standardization, firms face an inherent conflict in standardization, firms face an inherent conflict between value creation and value capture. A between value creation and value capture. A completely open standard creates lots of value, none completely open standard creates lots of value, none of which can be captured; a completely closed of which can be captured; a completely closed standard captures 100 percent of no value created. standard captures 100 percent of no value created. So a profit–maximizing firm must seek an So a profit–maximizing firm must seek an intermediate point that partially accomplishes both intermediate point that partially accomplishes both goals.goals.

Thus to pay the bills, there has to be value capture Thus to pay the bills, there has to be value capture somewhere: everything has some level of openness somewhere: everything has some level of openness and some level of proprietary–ness. Typically, and some level of proprietary–ness. Typically, standards that are open in one area are often not standards that are open in one area are often not open in another.open in another.””

The role of capital?The role of capital? The cost of starting an internet company have gone down by The cost of starting an internet company have gone down by

80% over the last 8 years80% over the last 8 years

““Companies no longer need to raise lots of cash, no longer need Companies no longer need to raise lots of cash, no longer need lots of people, no longer need to even directly sell anything at all lots of people, no longer need to even directly sell anything at all to be considered successful. They need revenue, of course, but to be considered successful. They need revenue, of course, but that's mainly through advertising. And they need to create that's mainly through advertising. And they need to create something people want to use. But Super Bowl ads? Forget those.something people want to use. But Super Bowl ads? Forget those.

So there is plenty of money available -- nearly $1 trillion -- but it is So there is plenty of money available -- nearly $1 trillion -- but it is coming at a time when, as I have just described, a whole new coming at a time when, as I have just described, a whole new class of start-ups has appeared that doesn't want VC money -- at class of start-ups has appeared that doesn't want VC money -- at least not very much of it.”least not very much of it.”

Conclusion: 1) emergence of ‘non-capitalist’ social entrepreneurs; Conclusion: 1) emergence of ‘non-capitalist’ social entrepreneurs; 2) capital needed ‘a posteriori’, after prior success2) capital needed ‘a posteriori’, after prior success

Modalities of SharingModalities of Sharing

Types of individual engagementTypes of individual engagement 1. 1. The classical "prosumer mode"The classical "prosumer mode", in which , in which

everybody is working basically for themselves in everybody is working basically for themselves in using and customizing productsusing and customizing products

2. 2. The Web 2.0 "swarm mode"The Web 2.0 "swarm mode" in which people in which people are loosely aggregated in doing things : “the are loosely aggregated in doing things : “the strength of weak ties”strength of weak ties”

3. The 3. The "community mode""community mode", production of , production of common artefactscommon artefacts

These three modes are pretty separated, but there is a "hidden These three modes are pretty separated, but there is a "hidden continuum" structurally connecting them, they become "mutual continuum" structurally connecting them, they become "mutual enablers".enablers".

User vs. corporate typologyUser vs. corporate typologyType of UsersType of Users Type of CorporationType of Corporation

Prosumer ModeProsumer Mode CrowdsourcingCrowdsourcing

Swarming ModeSwarming Mode Platform EnablersPlatform Enablers

Community ModeCommunity Mode Commons-dependent Commons-dependent

Types of Corporate EngagementTypes of Corporate Engagement Externalizers/Crowdsourcers: external Externalizers/Crowdsourcers: external

producers are integrated in the corporate producers are integrated in the corporate value chainvalue chain

Participation enablers (Web 2.0 paradigm):Participation enablers (Web 2.0 paradigm): enable the loose interconnection of individuals; and enable the loose interconnection of individuals; and monetize the common attention: Ebaymonetize the common attention: Ebay

Commons-dependent:Commons-dependent: corporations monetizing corporations monetizing derivative value created by peer communities (FLOSS derivative value created by peer communities (FLOSS companies)companies)

Corporate Co-Creation StrategiesCorporate Co-Creation StrategiesThe Direct Economy Model of Xavier ComtesseThe Direct Economy Model of Xavier Comtesse

Passive consumptionPassive consumption: : The consumer is getting products or services with no real interaction The consumer is getting products or services with no real interaction and no real choice. He has to take whatever is available. and no real choice. He has to take whatever is available.

Self ServiceSelf Service: : The consumer is now given the ability to choose between various products or The consumer is now given the ability to choose between various products or services. This first step is already a huge step forward, as the consumer can go around the vendor services. This first step is already a huge step forward, as the consumer can go around the vendor to pick and choose what he wants. to pick and choose what he wants.

DIY: Do It YourselfDIY: Do It Yourself: : At this level, the consumer starts getting involved in the value chain. This At this level, the consumer starts getting involved in the value chain. This is what IKEA offers, where you are not just buying a product, you are actually also delivering it to is what IKEA offers, where you are not just buying a product, you are actually also delivering it to your home and building it yourself. This case is an example of the first disruption from the standard your home and building it yourself. This case is an example of the first disruption from the standard retail value chain. retail value chain.

Co-designCo-design: : At this level, the consumer starts adding value by customizing the product and At this level, the consumer starts adding value by customizing the product and therefore defining his needs himself (as opposed to buying a product defined by the product therefore defining his needs himself (as opposed to buying a product defined by the product management team). This is what Dell is asking from customers when they have to pick and choose management team). This is what Dell is asking from customers when they have to pick and choose options to build a computer. options to build a computer.

Co-creationCo-creation: : This is the ultimate level of involvement, where the consumer is actually involved This is the ultimate level of involvement, where the consumer is actually involved in the design of the product or service itself. This is what Open Source does for developers, and in the design of the product or service itself. This is what Open Source does for developers, and what Wikipedia does for knowledge consumers. Similarly Procter and Gamble has a “Connect and what Wikipedia does for knowledge consumers. Similarly Procter and Gamble has a “Connect and Develop” program that lets innovators define products.Develop” program that lets innovators define products.

Autonomy in Production (1)Autonomy in Production (1)The Direct Economy Model updated for peer production:The Direct Economy Model updated for peer production:

Criteria 1: outside, or inside the market?Criteria 1: outside, or inside the market?

Criteria 2: production of use value or Criteria 2: production of use value or production of exchange valueproduction of exchange value

Criteria 3: individually oriented, or Criteria 3: individually oriented, or community orientedcommunity oriented

Autonomy in Production (2)Autonomy in Production (2)The Direct Economy Model updated for peer production:The Direct Economy Model updated for peer production:

Direct peer production of use value with no concern for Direct peer production of use value with no concern for monetization: the adventure economy of couchsurfing.commonetization: the adventure economy of couchsurfing.com

Direct peer production of use value with concern for equitable Direct peer production of use value with concern for equitable monetization: OS Alliance, ecopyleft, user ownership theorymonetization: OS Alliance, ecopyleft, user ownership theory

Direct production of use value by groups with commons-oriented Direct production of use value by groups with commons-oriented business ecologybusiness ecology

Direct production of use value by individuals with monetization of Direct production of use value by individuals with monetization of attention through proprietary platformsattention through proprietary platforms

Direct production of exchange value by groups: cooperative Direct production of exchange value by groups: cooperative productionproduction

Direct production of exchange value by individuals: minipreneurial Direct production of exchange value by individuals: minipreneurial ecology, social commerce, social retailingecology, social commerce, social retailing

Media Monetization StrategiesMedia Monetization Strategies Audience growth (N+1) = Attention Audience growth (N+1) = Attention

EconomyEconomy

Metcalfe’s Law (N-square) = Transcational Metcalfe’s Law (N-square) = Transcational Multiplication, Social CommerceMultiplication, Social Commerce

Reed’s Law (N-quadrupling) = Long Tail Reed’s Law (N-quadrupling) = Long Tail communities, Group-Forming Networkscommunities, Group-Forming Networks

Van Till’s Law: what you can <do> in the Van Till’s Law: what you can <do> in the groups is beyond measuregroups is beyond measure

Media Monetization Strategies Media Monetization Strategies (2)(2)

Business Models: Advertizing, Business Models: Advertizing, Freemium, Market Platform, Freemium, Market Platform, FundraisingFundraising

Advertizing models: Display Advertizing models: Display (banners), Matching (Google), (banners), Matching (Google), Sponsored Content, Social Media Sponsored Content, Social Media PresencePresence

What does it mean for What does it mean for marketing?marketing?

Differentiation according to polarity: Differentiation according to polarity: emergence of community-oriented emergence of community-oriented business modelsbusiness models

Social commerce, social retailing, affinity Social commerce, social retailing, affinity marketingmarketing

Network facilitators, vendor relations Network facilitators, vendor relations managementmanagement

Zero-advertizing brandsZero-advertizing brands

Commons-dependent business Commons-dependent business strategiesstrategies

1.1. support sellersupport seller• revenue is generated by selling two broad categories of items -- physical goods revenue is generated by selling two broad categories of items -- physical goods

and/or services that can be used to justify higher prices and/or services that can be used to justify higher prices • most if not all open source licences would work for this model most if not all open source licences would work for this model

2. Loss leader/market positioner2. Loss leader/market positioner• no charge open source product is used as a loss leader for traditional commercial no charge open source product is used as a loss leader for traditional commercial

software software • open source product generates little or no revenue part customers are attracted open source product generates little or no revenue part customers are attracted

for other products sold using the traditional model for other products sold using the traditional model

3. Widget frosting3. Widget frosting• intended for companies in business primarily to sell hardware but use the open intended for companies in business primarily to sell hardware but use the open

source model for enabling tools distributed at no charge along with the hardware source model for enabling tools distributed at no charge along with the hardware • most revenue is generated through sales of the hardwaremost revenue is generated through sales of the hardware

4. Brand/franchise licensing4. Brand/franchise licensing• a company makes the research tool itself open source but retains the rights to its a company makes the research tool itself open source but retains the rights to its

product trademarks and related intellectual property and charges other product trademarks and related intellectual property and charges other companies for the right to use those trademarks in creating derivative products companies for the right to use those trademarks in creating derivative products distributed under the same brand name distributed under the same brand name

• this requires that the product exist in two different forms with two different this requires that the product exist in two different forms with two different names -- official (trademarked), e.g. Netscape and unofficial, e.g. Mozilla names -- official (trademarked), e.g. Netscape and unofficial, e.g. Mozilla

CrowdsourcingCrowdsourcing Jeff Howe: "For the last decade or so, companies have been Jeff Howe: "For the last decade or so, companies have been

looking overseas, to India or China, for cheap labor. But now it looking overseas, to India or China, for cheap labor. But now it doesn’t matter where the laborers are – they might be down the doesn’t matter where the laborers are – they might be down the block, they might be in Indonesia – as long as they are connected block, they might be in Indonesia – as long as they are connected to the network. to the network.

Technological advances in everything from product design Technological advances in everything from product design software to digital video cameras are breaking down the cost software to digital video cameras are breaking down the cost barriers that once separated amateurs from professionals. barriers that once separated amateurs from professionals. Hobbyists, part-timers, and dabblers suddenly have a market for Hobbyists, part-timers, and dabblers suddenly have a market for their efforts, as smart companies in industries as disparate as their efforts, as smart companies in industries as disparate as pharmaceuticals and television discover ways to tap the latent pharmaceuticals and television discover ways to tap the latent talent of the crowd. The labor isn’t always free, but it costs a lot talent of the crowd. The labor isn’t always free, but it costs a lot less than paying traditional employees. It’s not outsourcing; it’s less than paying traditional employees. It’s not outsourcing; it’s crowdsourcing." crowdsourcing."

Examples: Innocentive, Crowdspirit, Café Press, stock photographyExamples: Innocentive, Crowdspirit, Café Press, stock photography

Crowdsourcing PlayersCrowdsourcing Players Creators (core) Creators (core)

• This is the group of people that is the most enthusiastic about the collaborative This is the group of people that is the most enthusiastic about the collaborative offer, and they go to great lengths in pursuit of creating something unique. They offer, and they go to great lengths in pursuit of creating something unique. They submit original content and remix each others’ material to produce solutions that submit original content and remix each others’ material to produce solutions that will earn them respect, status, acceptance, reputation, as well as material rewards.will earn them respect, status, acceptance, reputation, as well as material rewards.

Critics (inner ring)Critics (inner ring)

• Critics are the people that do not produce original solutions, but are highly involved Critics are the people that do not produce original solutions, but are highly involved in the conversation around them. They criticize, offer development suggestions to in the conversation around them. They criticize, offer development suggestions to creators and act as evangelists by actively spreading the word about the stuff they creators and act as evangelists by actively spreading the word about the stuff they like (or alternatively, stuff they hate) by e.g. blogging. like (or alternatively, stuff they hate) by e.g. blogging.

Crowds (outer ring)Crowds (outer ring)

• The larger crowd is participating but not conversing as intensively as the critics. The larger crowd is participating but not conversing as intensively as the critics. They tag, recommend, rate, vote, send e-mail links to friends and sometimes write They tag, recommend, rate, vote, send e-mail links to friends and sometimes write an occasional review. The interaction is therefore quite shallow compared to the an occasional review. The interaction is therefore quite shallow compared to the previous level. There is however a great wisdom to be gathered from all this previous level. There is however a great wisdom to be gathered from all this grassroots activity: their input elicited carefully, the crowds through their actions grassroots activity: their input elicited carefully, the crowds through their actions help organizing the alternative solutions and understanding their worth. help organizing the alternative solutions and understanding their worth.

The Flirt model of crowdsourcingThe Flirt model of crowdsourcing

FacilitiesFacilities • Facilities have to be in place for the participants to have a place for meeting and Facilities have to be in place for the participants to have a place for meeting and

interaction. However it doesn’t always mean that the company has to build a social interaction. However it doesn’t always mean that the company has to build a social network service from scratch. network service from scratch.

LanguageLanguage • The customers are not stupid. They have to be treated with respect. Fake bloggers The customers are not stupid. They have to be treated with respect. Fake bloggers

and ‘user-generated content’ crafted by ad agencies are bound for a beating. and ‘user-generated content’ crafted by ad agencies are bound for a beating.

IncentivesIncentives • The blood, sweat & tears from your customers don’t come for free. The incentives The blood, sweat & tears from your customers don’t come for free. The incentives

required by the different groups vary, and some are willing to work for less than required by the different groups vary, and some are willing to work for less than others, but the issue has to be given extra careful thought in engaging the others, but the issue has to be given extra careful thought in engaging the community in an exchange meaningful to all participants. community in an exchange meaningful to all participants.

RulesRules • Don’t expect to a swarm of creativity by creating an open environment where Don’t expect to a swarm of creativity by creating an open environment where

everybody is free to do whatever might occur to them. Naturally, you have to think everybody is free to do whatever might occur to them. Naturally, you have to think about e.g. manufacturing constraintsabout e.g. manufacturing constraints

ToolsTools • The people obviously need to have access to the tools necessary to create and The people obviously need to have access to the tools necessary to create and

participate. These tools can be provided by the company (like Lego’s Digital participate. These tools can be provided by the company (like Lego’s Digital Designer, a piece of software that let’s you design your own lego models) or it may Designer, a piece of software that let’s you design your own lego models) or it may be assumed that people already have them (digital cameras / cameraphones in the be assumed that people already have them (digital cameras / cameraphones in the developed world).developed world).

Wisdom of Crowds?Wisdom of Crowds? James Surowiecky: James Surowiecky:

““There are There are four key qualitiesfour key qualities that make a crowd smart. that make a crowd smart.

1) It needs to be diverse, so that people are bringing different 1) It needs to be diverse, so that people are bringing different pieces of information to the table. pieces of information to the table.

2) It needs to be decentralized, so that no one at the top is 2) It needs to be decentralized, so that no one at the top is dictating the crowd’s answer. dictating the crowd’s answer.

3) It needs a way of summarizing people’s opinions into one 3) It needs a way of summarizing people’s opinions into one collective verdict. collective verdict.

4) And the people in the crowd need to be independent, so that 4) And the people in the crowd need to be independent, so that they pay attention mostly to their own information, and not they pay attention mostly to their own information, and not worrying about what everyone around them thinks."worrying about what everyone around them thinks."

P2P and MarketsP2P and MarketsDifferences between peer production and the market:Differences between peer production and the market: Markets do not function according to the criteria of collective intelligence and Markets do not function according to the criteria of collective intelligence and

holoptism, holoptism, but rather, in the form of insect-like swarming intelligence. Yes, there are but rather, in the form of insect-like swarming intelligence. Yes, there are autonomous agents in a distributed environment, but each individual only sees his own autonomous agents in a distributed environment, but each individual only sees his own immediate benefit. immediate benefit.

Markets are based on 'neutral' cooperation, and not on synergistic cooperation: no Markets are based on 'neutral' cooperation, and not on synergistic cooperation: no reciprocity is created. reciprocity is created.

Markets operate for the exchange value and profit, not directly for the use value.Markets operate for the exchange value and profit, not directly for the use value.

Whereas P2P aims at full participation, markets only fulfill the needs of those with Whereas P2P aims at full participation, markets only fulfill the needs of those with purchasing power.purchasing power.

Amongst the disadvantages of markets are:Amongst the disadvantages of markets are:

They do not function well for common needs that do not assure full payment of the They do not function well for common needs that do not assure full payment of the service renderedservice rendered (national defense, general policing, education and public health), and do not (national defense, general policing, education and public health), and do not only fail to take into account negative externalities (the environment, social costs, future only fail to take into account negative externalities (the environment, social costs, future generations), but actively discourages such behavior. generations), but actively discourages such behavior.

Since open markets tend to lower profit and wages, it always gives rise to anti-Since open markets tend to lower profit and wages, it always gives rise to anti-markets, markets, where oligopolies and monopolies use their privileged position to have the state 'rig' where oligopolies and monopolies use their privileged position to have the state 'rig' the market to their benefit. The theoretical peer-like qualities of agents in free markets are the market to their benefit. The theoretical peer-like qualities of agents in free markets are absent from capitalismabsent from capitalism

P2P and the Market: ImmanenceP2P and the Market: Immanence P2P is highly dependent on the marketP2P is highly dependent on the market

The market is highly dependent on peer production and The market is highly dependent on peer production and social innovationsocial innovation

Many peer production projects rely concretely on a Many peer production projects rely concretely on a business ecology – i.e. Linux & IBMbusiness ecology – i.e. Linux & IBM

An increasing number of corporations are commons-An increasing number of corporations are commons-dependentdependent

Peer production and externalization are part of the value Peer production and externalization are part of the value chain, the production chain, the cost-benefit calculations of chain, the production chain, the cost-benefit calculations of corporationscorporations

P2P and the Market: P2P and the Market: transcendencetranscendence

P2P remains a non-reciprocal form of productionP2P remains a non-reciprocal form of production

No pricing, no corporate hierarchy, no market No pricing, no corporate hierarchy, no market allocation of resourcesallocation of resources

P2P is dependent on the market, but also P2P is dependent on the market, but also restricted by the market: unrealized social value restricted by the market: unrealized social value waiting to be unlockedwaiting to be unlocked

P2P can be part of a political project to transcend P2P can be part of a political project to transcend the current political economythe current political economy

P2P and the Market as field of P2P and the Market as field of tensiontension

Who rules: from cognitive capitalists, Who rules: from cognitive capitalists, via vectoralists to netarchistsvia vectoralists to netarchists

From the Second to the Third From the Second to the Third Enclosures?Enclosures?

From a crisis of value capture to a From a crisis of value capture to a crisis of accumulation?crisis of accumulation?

Institutions vs. CommunitiesInstitutions vs. Communities

The politics of Web 2.0The politics of Web 2.0 Web 2.0 and peer producers, the Web 2.0 and peer producers, the

dolphin/shark dilemma:dolphin/shark dilemma:

• 1) Who owns the platform (netarchical and 1) Who owns the platform (netarchical and vectoralist strategies)vectoralist strategies)

• 2) Is the infrastructure open/free; 2) Is the infrastructure open/free; • 3) Participatory design: is true sharing 3) Participatory design: is true sharing

possible?possible?• 3) Who owns the content? (third enclosures)3) Who owns the content? (third enclosures)• 4) Monetization strategies (revenue sharing)4) Monetization strategies (revenue sharing)

What kind of ‘intersubjectivity’?What kind of ‘intersubjectivity’?Alan Page Fiske’s Relational ModelAlan Page Fiske’s Relational Model

Reciprocity: Reciprocity: The Gift Economy (tribalism)The Gift Economy (tribalism)

Authority Ranking: Authority Ranking: The Tributary Economy The Tributary Economy (feudalism)(feudalism)

Market Pricing: Market Pricing: The Market Economy The Market Economy (capitalism)(capitalism)

Communal Shareholding: Communal Shareholding: The Sharing The Sharing Economy (peer to peer)Economy (peer to peer)

Economic Evolution (projection)Economic Evolution (projection) The primary economy is based on reciprocity, which derives from common The primary economy is based on reciprocity, which derives from common

ancestry or lineageancestry or lineage. It is based on families, clans, tribes and exchange mostly . It is based on families, clans, tribes and exchange mostly operates through gifts which create further obligation. Wants are defined by the operates through gifts which create further obligation. Wants are defined by the community. Leadership is in the hands of the lineage leadership. Key issue: community. Leadership is in the hands of the lineage leadership. Key issue: belonging.belonging.

The secondary economy arises together with power monopolies which The secondary economy arises together with power monopolies which engender coercion as a means to force cooperationengender coercion as a means to force cooperation. We enter the domain of . We enter the domain of class societies, and production is organized by the elite in power, which holds class societies, and production is organized by the elite in power, which holds together through the symbolic power which transforms power into allegiance. together through the symbolic power which transforms power into allegiance. Respect for power, in the form of tribute, taxes, etc.. is normative. The key question Respect for power, in the form of tribute, taxes, etc.. is normative. The key question is: 'to deserve power or to deserve subjection'. is: 'to deserve power or to deserve subjection'.

The tertiary economy arises with the entrepreneur and capitalism. It is The tertiary economy arises with the entrepreneur and capitalism. It is based on 'equivalent', i.e. 'fair' exchange, which is normativebased on 'equivalent', i.e. 'fair' exchange, which is normative. Power arises . Power arises from relative productivity, relative monopoly over a needed good, and from the wage from relative productivity, relative monopoly over a needed good, and from the wage relationship which creates dependence. Cooperation is no longer correlated to relationship which creates dependence. Cooperation is no longer correlated to belonging. Relationships are impersonal.belonging. Relationships are impersonal.

The quaternary economy, based on peer to peer processes, is based on The quaternary economy, based on peer to peer processes, is based on 'ideological leaders' which can frame common goals and common belonging 'ideological leaders' which can frame common goals and common belonging and is based on membership and contributionand is based on membership and contribution. Contributing to the best of one's . Contributing to the best of one's ability to common goals is normative and the key question becomes: to follow an ability to common goals is normative and the key question becomes: to follow an existing group or to create one's own, i.e. to convince or be convinced..existing group or to create one's own, i.e. to convince or be convinced..

A peer-informed economy? (1)A peer-informed economy? (1) Today: Today: treating scarce goods as if they were treating scarce goods as if they were

infinite; treating abundant goods as it there infinite; treating abundant goods as it there were scarce: the current economy is based on were scarce: the current economy is based on pseudo-abundance and pseudo-scarcitypseudo-abundance and pseudo-scarcity

Tomorrow: Tomorrow: A steady-state economy coupled A steady-state economy coupled with growing immaterial assets and a well-with growing immaterial assets and a well-being economy: the P2P political economy is being economy: the P2P political economy is based on real abundance and scarcitybased on real abundance and scarcity

A peer-informed economy? (2)A peer-informed economy? (2) Today: Today: the commodification of everything; cognitive and affective the commodification of everything; cognitive and affective

capitalism; the colonization of the life-world in the market statecapitalism; the colonization of the life-world in the market state

Tomorrow: a pluralist economy combining:Tomorrow: a pluralist economy combining:

• A core of non-reciprocal peer productionA core of non-reciprocal peer production

• A reciprocity-based gift economy for services and traditional A reciprocity-based gift economy for services and traditional pre-capitalist economies (open money reform)pre-capitalist economies (open money reform)

• A vibrant market based on non-externalization, non-scarce A vibrant market based on non-externalization, non-scarce monies and new corporate formatsmonies and new corporate formats

• Governance based on multi-stakeholdershipGovernance based on multi-stakeholdership

P2P Politics: StrategiesP2P Politics: Strategies

• Three strategies:Three strategies:

Transgressive = ignoring the old: Transgressive = ignoring the old: Filesharing, PiratbyranFilesharing, Piratbyran

Alternative/Constructive = building the Alternative/Constructive = building the new: Creative Commons, GPLnew: Creative Commons, GPL

Reformist = changing/adapting the old: Reformist = changing/adapting the old: legislative reforms (DAVDSI France)legislative reforms (DAVDSI France)

Systems of InfluenceSystems of Influence

P2P Politics: GoalsP2P Politics: Goals Recognition of true scarcities through true costing Recognition of true scarcities through true costing

• Reforming the market: natural capitalism, living economiesReforming the market: natural capitalism, living economies

Impeding artificial scarcitiesImpeding artificial scarcities• IP reform (against illicit monopoly rents from IP)IP reform (against illicit monopoly rents from IP)• Monetary reformMonetary reform

Promoting true abundancePromoting true abundance• Sustainability of peer production: p2p to market?Sustainability of peer production: p2p to market?• Universal basic income?Universal basic income?

Democracy vs. Self-governanceDemocracy vs. Self-governance One vote, binary decicions vs. One vote, binary decicions vs.

Many differentiated decisionsMany differentiated decisions

Discontinuous participation and batch processing Vs.Discontinuous participation and batch processing Vs.Continuous, real-time bubbling upContinuous, real-time bubbling up

Polyphony, with prior perspective, arrested products Vs.Polyphony, with prior perspective, arrested products Vs.No prior code, permanent evaluationNo prior code, permanent evaluation..

Autonomy is about Autonomy is about direct expression without representationdirect expression without representation

Politics is no longer about having/taking power, but about Politics is no longer about having/taking power, but about augmenting the potential for autonomyaugmenting the potential for autonomy

As a new mode of production, governance, and property

P2P = a total social factP2P = a total social fact

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Email: michelsub2004@gmail.com