The Networked World PSI 2007 Kaido Kikkas This document uses the GNU Free Documentation License (v1.2 or newer).

The Wealth of Networks by Yochai Benkler no noncommercial car manufacturers or voluntary steel foundries Yet science FLOSS software public media as most reliable

Three important things information knowledge culture were temporarily shadowed by capital, money and profit, but are returning With the coming of the Internet, industrial information economy => networked information economy

New economy Decentralised individual action Distributed, nonmarket mechanisms Inexpensive and ubiquitous computing Widening base of production

Three factors Information production is inherently more suitable for nonmarket strategies than industrial production Rapid spread of nonmarket production, widening base effective, large-scale cooperative efforts in peer production of information, knowledge, and culture

The Econodwarfs are puzzled What's going on? Benkler: "Human beings are, and always have been, diversely motivated beings. We act instrumentally, but also noninstrumentally. We act for material gain, but also for psychological well-being and gratification, and for social connectedness." Essentially the Linus' Law!

Motivation The Linus' Law: survival social position entertainment Examples: Bill Gates, Akihito ct Wozniak's formula: H = F3

The network bonus The networked economy increases the practical production capabilities: it improves their capacity to do more for and by themselves it enhances their capacity to do more in loose commonality with others, without being constrained to organize their relationship through a price system or in traditional hierarchical models of social and economic organization it improves the capacity of individuals to do more in formal organizations that operate outside the market sphere.

Apples vs novels rival vs nonrival goods public good – not produced if priced at their marginal cost information as both input and output of itself => traditional IP can either be ineffective or counterproductive due to attaching extra costs

Some examples Linux Wikipedia Second Life Slashdot Project Gutenberg MUME distributed supercomputing (SETI@Home) P2P (incl. Skype)