1. 1 SNAP and SPAN and the Ontology of Goods and Services Barry Smith Department of Philosophy University at Buffalo and Institute for Formal Ontology and Medical Information Science University of Leipzig http://ontology.buffalo.edu

2. 2 A Network of Domain Ontologies BFO

3. 3 A Network of Domain Ontologies BFO ChemO

4. 4 A Network of Domain Ontologies BFO ChemOMedO

5. 5 A Network of Domain Ontologies BFO ChemOMedOLexO

6. 6 A Network of Domain Ontologies BFO ChemOMedOLexOEcO

7. 7 Extreme Multigranular Realism We have a huge amount of knowledge of reality, at many different levels of granularity, from microphysics to cosmology

8. 8 Nouns and verbs Substances and processes Continuants and occurrents In preparing an inventory of reality we keep track of these two different categories of entities in two different ways

9. 9 Natural language glues them together indiscriminately substance t i m e process

10. 10 Snapshot vs. Video substance t i m e process

11. 11 SNAP vs SPAN substance t i m e process

12. 12 Three kinds of SNAP entities 1.Substances 2.Qualities, Powers, Functions, Roles 3.Spatial regions, Contexts, Niches

13. 13 Substances Mesoscopic reality is divided at its natural joints into substances: animals, bones, rocks, potatoes

14. 14 The Ontology of Substances Substances form natural kinds (universals, species + genera)

15. 15 QPFR your knowledge of Greek John’s debts my permission to drive Sam’s bank balance endure identically through time

16. 16 Two kinds of SPAN entities 1.Processes, Events, Actions 2.Spatio-temporal regions, Behavior Settings

17. 17 Processes Processes merge into one another Process kinds merge into one another … few clean joints either between instances or between types

18. 18 Processes t i m e

19. 19 Some clean joints derive from the fact that processes are dependent on substances (my headache is cleanly demarcated from your headache)

20. 20 Some clean joints in realms of artefactual processes: weddings on-line trades dog shows rental contract terms sharp divisions imputed via clocks, calendars

21. 21 Substances and processes t i m e process demand different sorts of inventories

22. 22 Substances demand 3-D partonomies space

23. 23 Processes demand 4D-partonomies t i m e

24. 24 Processes have temporal parts The first 5 minutes of my headache is a temporal part of my headache The first game of the match is a temporal part of the whole match

25. 25 Substances and QPFRs do not have temporal parts The first 5-minute phase of my existence is not a temporal part of me It is a temporal part of that complex process which is my life

26. 26 Qualities, Roles, Functions, Powers, Dispositions, Plans Do not have temporal parts Spatial regions, contexts, niches Do not have temporal parts

27. 27 Substances have spatial parts Substance is one thing The life of a substance is another thing

28. 28 How do we glue these two different sorts of entities together mereologically? How do we include them both in a single inventory of reality

29. 29 You are a substance Your life is a process You are 3-dimensional Your life is 4-dimensional

30. 30 Substances and processes form two distinct orders of being Substances exist as a whole at every point in time at which they exist at all Processes unfold themselves through time, and are never present in full at any given instant during which they exist. When do both exist to be inventoried together?

31. 31 Main problem English swings back and forth between two distinct depictions of reality … imposing both SNAP and SPAN partitions in the same breath

32. 32 A good formal ontology must divide into two sub-ontologies: 1.a SNAPshot ontology of those things which do not have temporal parts 2.a four-dimensionalist ontology (of processes) SPAN

33. 33 These represent two views of the same rich and messy reality, the reality captured promiscuously by natural language

34. 34 The SPAN Ontology t i m e

35. 35 boundaries are mostly fiat t i m e everything is flux

36. 36 t i m e stock market slide

37. 37 here time exists as part of the domain of the ontology

38. 38 The SNAP Ontologies t1t1 t3t3 t2t2 here time exists outside the ontology, as an index or time-stamp

39. 39

40. 40 Three views/partitions of the same reality

41. 41 The Time-Stamped (3-D) Ontology t1t1 t3t3 t2t2

42. 42 each section through reality includes everything which exists at the corresponding now

43. 43 Ontological Square Substantial Dependent Entities Exercise of power Exercise of function Movement Action Substances Collectives Undetached parts Substantial boundaries Powers Functions Qualities Shapes Occurrents Continuants

44. 44 Refining the Ontological Square Substantial Moments (Dependent) Exercise of power Exercise of function Movement Action Substances Collectives Undetached parts Substantial boundaries Powers Functions Qualities Shapes SPAN SNAP

45. 45 Refining the Ontological Square Substantial Dependent Entities Exercise of power Exercise of function Movement Action Processes Substances Collectives Undetached parts Substantial boundaries Qualities Powers Functions Roles QPFR Occurrents Continuants

46. 46 Refining the Ontological Square Substantial Dependent Entities John‘s reddening John‘s blushing John‘s bruising SPAN Substances Collectives Undetached parts Substantial boundaries John‘s redness John‘s blush John‘s bruise SNAP Occurrents Continuants

47. 47 Refining the Ontological Square Substantial Dependent Entities John‘s reddening John‘s blushing John‘s bruising SPAN Stuff (Blood, Snow, Tissue) Mixtures Holes, Contexts, Niches John‘s redness John‘s blush John‘s bruise SNAP Occurrents Continuants

48. 48 There are many different species-genus hierarchies  many different ways to cut through the complex thicket of invariant patterns in reality  MANY DIFFERENT VIEWS OF THE SAME REALITY using SNAP/SPAN categories

49. 49 Coarse-grained Partition

50. 50 Fine-Grained Partition

51. 51 Ontological Zooming

52. 52 Universe/Periodic Table animal bird canary ostrich fish folk biology partition of DNA space

53. 53 Universe/Periodic Table animal bird canary ostrich fish both are transparent partitions of one and the same reality

54. 54 Many partitions are transparent to reality One job of the ontologist is to understand how different partitions of the same reality interrelate

55. 55 SNAP: Entities existing in toto at a time

56. 56

57. 57

58. 58 SNAP

59. 59 SPAN: Entities extended in time

60. 60 SPAN: Entities extended in time

61. 61 SPAN: Entities extended in time

62. 62 The ontologies here indicated are partial only (they are windows on just that portion of reality which is visible through the given ontology).

63. 63 Double-Counting A cell labeled * within a given ontology represents a category division which involves some double-counting in relation to the categories within the same ontology represented by cells not so labeled.

64. 64 For example here

65. 65 SPAN: Entities extended in time

66. 66 Behavior Settings SPAN’s spatiotemporal regions include behavior settings (the 5pm train to Long Island, the early morning swim, your meeting with the Dean).

67. 67 APPLICATION The Ontology of National Income Statistics from the Consumer’s Perspective

68. 68 Music Consumer’s perspective Producer’s perspective Taxation authority’s perspective What is the CD, which you buy in a shop?

69. 69 Is it a commodity? Or is it a service?

70. 70 Embodied and Splintered Services EmbodiedDisembodied/Splintered haircuttingLPs, CDs consultingbooks, newspapers nursingpainting prostitutionadvertising teachingtelevision, telephone transportsoftware on the net

71. 71 Definition Service = an economic good for which production and consumption coincide

72. 72 ‘splintered’ (‘disembodied’) services are classified as services even though their production and consumption do not coincide

73. 73 Is a CD a commodity or a service? Standard view: when I buy a CD I am buying services of a composer and performers. (SPAN) Correct view: I am buying a commodity, which is ontologically no different from a car or a bag of rice. (SNAP)

74. 74 Two Kinds of Commodities consumable (bananas) and non-consumable (roads, telephone lines) SNAP The latter afford services SPAN as an ocean affords swimming

75. 75 Strict, independent services Dependent Services Selling manufactu red goods Renting manufactured goods haircuttingadvertisingLPs, CDscar rental consultingselling, transport books, newspapers telecommunications nursinginput service (typing) paintingroad networks prostitutionadvertising teaching television, theatre performances television, theatre technical services software on the net

76. 76 Are telecommunications commodities? (do we rent the telephone system for 5 seconds) or services (like buying a hairdresser’s services for 5 minutes)? Are telecommunications like water or electricity? = Commodities which come down pipes.

77. 77 Television and telecommunications are similar ontologically: each has two components: the network and the utilization of the network = continuants plus occurrents SNAP plus SPAN

78. 78 From the consumer’s perspective however television is a service industry: we watch television in order to enjoy the services of the actors. The network and delivery mechanism are secondary. Not so for telephone ‘service’: telecommunications is an industry analogous to car rental. We want to use the actual physical mechanical network object.

79. 79 Car rental is like home rental it is the purchase of an object for a certain time.

80. 80 Phone sex, like other stuff which comes down the phone line, is a service. But the telecommunication system itself is a commodity, which we rent in just the same way that we rent a free-standing public telephone in an airport. You still pay for your telephone connection when no one is using the line.

81. 81 Is software a service When you buy a piece of shrink- wrapped software you sign a license agreement. Is this renting software? Are things any different if you download the software from the internet? If it becomes unusable after 30 days?

82. 82 Dependent services What of: Transport services Insurance services Protection services (army services) Buying and selling services

83. 83 The category of personally delivered services – where production and consumption coincide both spatially and temporally – is characterized by the fact that rental is impossible. Such services (like all genuine services) can only be purchased.

84. 84 An adequate ontology of the marketing phenomenon: must include three categories: Substances (things, commodities, manufactured goods) Processes (also called events: services) Settings (environments, niches, contexts, situations).

85. 85 The value of a commodity is dependent upon the setting in which it exists at the moment of purchase. The value of a service is dependent upon the setting in which it exists at the moment of delivery.

86. 86 Telephones are physical goods. They have traditionally been regarded as services because they afford usage (they have the dispositional property of providing services). The traditional categorization is erroneous, because this dispositional property applies no less to cars, pianos, rice.

87. 87 Settings the ensemble of environmental features within which a purchase is made (environmental features which are relevant to the purchase). CONSIDER: BUYING A CAR

88. 88 A CD is a commodity because one can either buy it or rent it.

89. 89 An Ontology of Prostitution and Slavery A1 x is a commodity : x is necessarily of such a sort that it can either be bought or rented. A2 x is a service : x is necessarily of such a sort that it can only be bought. A3 x is a person : x is necessarily of such a sort that it can neither be bought nor rented A4 people cannot own other people

90. 90 Can you rent potatoes? Renting has to do with control, with power over Ownership can survive without control.

91. 91 Definition of renting x rents y to z : x owns y and x allows z to use y for limited time in exchange for recompense proportionate to the length of time involved. (There is an assumption that y will be available for multiple time periods.) Theorem: There is nothing which can only be rented. Proof: From the definition of renting, and the assumption that people cannot own other people.

92. 92 Services can never be assets Assets can always be depreciated. People cannot be depreciated. People cannot be assets Know-how is an asset. You can buy know-how (like brand equity) Know-how is a SNAP entity (a QPFR) Application of know-how is a SPAN entity (a process)

93. 93 Definition of buying What does it mean to buy a commodity? There is a transfer of property rights. There does not have to be any physical dislocation or removal. What does it mean to buy a service?

94. 94 You cannot rent people What is involved in employing people? Do you buy their labour or do you rent their labour. Marx: the commonsensical view according to which we can rent or hire bodyguards is mistaken. We do not rent bodyguards; we buy the services of bodyguards for given time periods. (See also escort agencies.) Why is this ontologically different from renting? Because when you rent something, this thing exists for a period of time beyond the rental time, and can in principle be rented again. Services, however, are time-perishable.

95. 95 Counter-argument Surely you can rent a bodyguard, because the bodyguard exists for a longer period of time than the time in which you rent him. No: you buy the services of the person

96. 96 More on the ontology of services A service is the actualization of a disposition. Therefore you cannot render the same service twice. (Type-token distinction. Every haircut is unique.)

97. 97 More on the ontology of services The service is the action, not the result It is the haircutting, not the result pattern in the hair on your head

98. 98 Ontological categories we need: 1.SNAP entities 1a. Persons 1b. Material things 1c. Stuffs: water, oil

99. 99 More SNAP entities 2. QPFR (may be the outcomes of processes, or realized in, processes) 2a. Mental states (happiness) 2b. Physical states of persons (health) 2c. Physical states of material things (plumbing system) 2d. Dispositions? Are they are subclass of states?

100. 100 3. SPAN entities 3a. Willed processes (processes produced on demand) (i) Actions (ii) Processes in material things produced on demand (explosions, movements of dentists‘ drills) 3b. Natural processes (a tree growing) 3c. Mental processes

101. 101 Settings (more SNAP entities) 4a. Of purchase 4b. Of delivery (for commodities) 4c. Of use (for commodities) 4d. Of delivery (for services)

102. 102 Settings Axiom: When you buy a service you also buy a delivery setting. And the delivery setting has the same temporal extent as the service itself. (Hairdressers) The delivery setting for commodities is transient. They bring you the car and leave.

103. 103 The Ontology of Real Estate Can you buy a setting? When you buy real estate, you buy a house and you also buy its setting. Real estate is like services in that its setting endures for as long as it does. Adam Smith: real estate is the only economic good that is not perishable.

104. 104 5. Mixed Categories (Bundles) Augmented products – car plus warranty, etc. Bundled club memberships How classify bundles in national income statistics

105. 105 SNAP: Book SPAN: Lecture Book can be put on-line Procedural: Knowing that vs. Knowing How

106. 106 Hill: A service is the outcome of an activity (it is a change as result, rather than a change as action) Problem with this is e.g. preventive medicine, which are activities designed to prevent certain outcomes. Services are in some ways analogous to public goods. They manifest the features of non-excludability and non- rivalry. The same service provider can provide consecutive services. Modern telecommunications services, theater performances, can provide the same service simultaneously to many people. Theater performances are impure public goods (club goods).