1. Structure Altruistic Economics AE 106 : Key Innovations of AE V1.0 A presentation given to Grameen Software by Dr. Robin Upton. Grameen Bank Bhaban, Mirpur 2, Dhaka 1216, Bangladesh 2005-0?-?? Available for download at www.altruists.org/ae106 Attribution – NonCommercial - ShareAlike www.altruists.org Recommended Pre-requisite: AE105: Blueprint for A People-Centred Economy

2. Innovation 1: Sympathy & The Network Of Care Innovation 2: Multiple-Value Pricing Implementation: Overview Structure Telephone Dilemma This presentation motivates two of the key innovations of Altruistic Economics from first principles, without reference to Classical Economics. “Everything should be made as simple as possible, but not simpler.” Albert Einstein

3. Telephone Dilemma International Telephone Dilemma Someone rings your mobile (Aktel) on a Grameen phone & asks if you can call back. Which do you choose? HE PAYS: YOU PAY: Grameen Aktel = 7/minute Aktel Grameen = 3/minute

4. 1 a. Sympathy Quantifying Sympathy You would give up your own profit. to save a friend’s loss. www.altruists.org/355 FriendYou s ympathy You have sympathy iff…

5. Quantifying Sympathy Friend of a Friend ? 01 3/73/7 Call BackDon’t Call Sympathy: Indifference value of s = 3 / 7

6. A stranger wants you to call them back… They claim to be a ‘good’ friend of your friend. Friend of a Friend? Do you Call? 2. Network of Care Friend You s ?

7. 1 b. Network of Care Sympathy helps us appreciate the relationships of others Not a Market! www.altruists.org/356

8. Not a Market! Numeric Self-Expression www.altruists.org/356 … different contacts … sympathy for trading partners Closer to how people really do business than the market model. … different sympathies Everyone has

9. Numeric Self-Expression. Two Dimensions of Feeling …of self-expression in numbers.  Unhappier Happier - + 0 Money can be seen as training…

10. Two Dimensions of Feeling. Creating, not Transferring Value Suppose and work on a project together: Good for Both Good for neither Good for Blue Good for Orange 0    + - - +

11. Healthy Society. Creating, not Transferring Value    Good for Both Bad for Both + + - - - Lose-Lose Quadrant A sick society has a lot of litigation, predatory lending, rent-seeking etc. Win-Win Quadrant A healthy society has a lot activity here

12. Competitive Scoring. Instinctive Competition 0 1 2 3 -2 -3    Left Right + + - - The blue lines show Win-Win and Lose-Lose can get the same scores. www.altruists.org/394 Traditional Money = Value Transfer

13. Instinctive Competition haggling can become deeply ingrained, even instinctive.  If we deal with strangers regularly… www.altruists.org/384. Competitive Mentality

14. www.altruists.org/384. Cooperative Mentality Science, Culture, Law, even Love … From Tom and Jerry onwards, the competitive metaphor overshadows all areas of our lives. Competitive Mentality

15. Cooperative Mentality How to get away from win-lose thinking ? Cooperative mentality exists, but is frustrated by current economic forms.. Cooperative Scoring www.altruists.org/406

16. Cooperative Scoring A Fundamental Problem Win-Win and Lose-Lose always get opposite scores…    Left Right + + - - Created Value Destroyed Value 0 -2 -3 1 2 3 www.altruists.org/395 … but interpersonal transfers aren’t relevant at all…  Non-Traditional Money = Value Creation

17. A Fundamental Problem    So… 3 3. Multiple-Value Scoring A single number can never reflect the value to both parties!

18. 2. Multiple-Value Scoring …we use a 2-dimensional system!    www.altruists.org/383 (X,Y)(X,Y) X Y Implementation Overview Independent evaluation resolves the conflict

19. Implementation Overview 1. Gift Economy Interface 2. Altruistic Economics Data 3. Friend-2-Friend 4. Hardware 1. Gift Economy Interface DONE TO DO DO Some

20. 1.Gift Economy Interface = Web-based templates allow easy creation of Pages 2. Altruistic Economics Data Aim: Bootstrapping development & fast adoption by WWW community e.g: A Search Engine to match up people... OffersRequests Robin Upton, +160h –45h, Rate= -0.2 Computer Hardware, Statistics, Foreign Languages, Bangladesh Contacts … Kevin Towell, +14h –3h, Rate= -0.2 Computer Hardware, Motorbike repair, Shop Management, Psychology … Angela Robinson, +550h –175h, Rate= +2 Can you help me with my Laptop? The E-mail is giving me a lot… Graham Upton, +3h –2h, Rate= +1.6 I just can’t get my Wireless LAN working properly. It keeps cutting out, just … Computer/Hardware/Repair www.altruists.org/ge

21. 2. Altruistic Economics Data N.B. Equity does not need to be ‘enforced.’ (This is up to the system’s users) 3. Friend2Friend = Standards for Sympathy. Evaluations A B CD S BC S CB S BD S AB S BA as a basis for interoperate software -2h +8h

22. 3. Friend2Friend = lightweight platform for secure connection & data exchange between selected peers 4. Hardware Layer Specification of a simple standard will mean it can be implemented in any platforms desired. www.altruists.org/ff

23. 4. Hardware Layer = network of devices that support IP-Traffic Wired 802.11 GPRS 3G 802.16 802.20 Many generations of wireless internet technology are emerging…

24. Appendix: Designing An Internet. Gift Economy Gift Economy To survive, it must resist attack from ‘leechers’ !!! Multi-Step Transactions Command Economy www.altruists.org/ae12

25. Multi-Step Transactions Gift Economy Command Economy Has This Person given to the Gift Economy? Only Give to People who are in Credit with You!