1. The Perfect Storm Photo: lamp.dailypennsylvanian.com

2. Perfect Storm: The simultaneous occurrence of weather events which, taken individually, would be far less powerful than the storm resulting from their combination Source: http://en.wikipedia.org/wiki/Perfect_storm Photo: lamp.dailypennsylvanian.com

3. Before the storm…

4. Ronald Coase London School of Economics (Commerce) 1931-32 scholarship studying American industry 1937 Why firms exist: “transaction costs” 1991 Nobel Prize Ronald H. Coase b. 1910 Photo: http://nobelprize.org

5. Coase Theorem A market can reach an efficient solution, even in the presence of externalities, as long as transaction costs are sufficiently low. Ronald H. Coase b. 1910 Photo: http://nobelprize.org

6. Transaction costs: the costs of making a deal. search costs –locating information about opportunities for exchange negotiation costs –negotiating the terms of the exchange enforcement costs –enforcing the contract

7. Wikinomics Revolutions: 1.Technological - web / HTML v. XML 2.Demographic - “echo” generation 3.Social 4.Economic Photo: www.images.usatoday.com

8. Wikinomics Principles: 1.Peering 2.Open boundaries 3.Sharing 4.Acting globally Photo: www.images.usatoday.com

9. Models of Peer Production: 1.Peer pioneers 2.Ideagoras 3.Prosumers 4.New Alexandrians 5.Platforms for participation 6.Global plant floor 7.Wiki workplace

10. Benefits of Peer Production: Harness external talent Keep up with users Boost demand for complements Reduce costs Shift locus of competition Take friction out of collaboration Develop social capital

11. Sources Tapscott, Don and Williams, Anthony D. Wikinomics. New York: Portfolio/Penguin Group 2006 Maney, Kevin. Mass collaboration could change way companies collaborate. Dec. 27 2006, USA Today http://www.usatoday.com/tech/columnist/kevinmaney/2 006-12-26-wikinomics_x.htm http://www.usatoday.com/tech/columnist/kevinmaney/2 006-12-26-wikinomics_x.htm Krugman, P.; Well, R.; Myatt, A. Microeconomics (Canadian edition) New York: Worth Publishers 2006 Ronald Coase Autobiography, Nobel Foundation http://nobelprize.org/nobel_prizes/economics/laureates/ 1991/coase-autobio.html http://nobelprize.org/nobel_prizes/economics/laureates/ 1991/coase-autobio.html Wikipedia. Ronald Coase. http://en.wikipedia.org/wiki/Ronald_Coase http://en.wikipedia.org/wiki/Ronald_Coase