Networked Information Economy / Benkler
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The document discusses the concept of a networked information economy characterized by decentralized production, distribution, and consumption of information goods, primarily driven by peer production and sharing rather than traditional market strategies. It highlights the shift away from mass media dependence and the implications of open source and non-market production for democracy and individual rights. Additionally, it addresses the motivations behind information production and sharing, as well as the potential challenges and dynamics of the commons and ownership in this new economy.
![The Networked
Information Economy
The Wealth of Networks
[ pages 1–90 ]
Presentation by Mindy McAdams](https://image.slidesharecdn.com/benklerpages190-121101111459-phpapp02/85/Networked-Information-Economy-Benkler-1-320.jpg)
![The End
The Wealth of Networks
[ pages 1-90 ]
All sources used are on the handout.](https://image.slidesharecdn.com/benklerpages190-121101111459-phpapp02/85/Networked-Information-Economy-Benkler-36-320.jpg)
Networked Information Economy / Benkler
- 1. The Networked Information Economy The Wealth of Networks [ pages 1–90 ] Presentation by Mindy McAdams
- 2. Information Production ► “Non-market” production – e.g., “Not for sale”; not Big Business ► Peer production and sharing Open source software – one example ► “Less dependence on commercial mass media” (p. 9) ► Why is this possible now? Why was it not possible earlier?
- 3. Information “Products” ► Writing:Stories, novels, journalism, blogs ► Music: Songs, recordings, MP3 files ► Movies: On DVD, on film, as downloads ► TV programs, news, entertainment ► Radio programs ► Photographs: All formats ► Software: As downloads or on CDs ► Graphics, illustrations, maps
- 4. Networked Information Economy ►A system of production, distribution, and consumption of information goods ► Characterized by: Decentralized individual action Wildly distributed, non-market means Not dependent on market strategies ► “The market” = capitalism, up to now
- 5. ► Division of labor leads to increased productivity ► Governments help progress best when they permit laissez-faire markets ► The “invisible hand” of the market moves toward the The Wealth of Nations, good of everyone Adam Smith (1776) ► What benefits those who reap large profits will benefit society as a whole
- 6. Non-market production ignores traditional market motivations (i.e., profit)
- 8. Does a market economy require democracy?
- 9. Does democracy require a market economy?
- 10. Democratic Countries Out of a total of 192 countries in the world … ► 122 countries are electoral democracies ► 89 countries are “free” (46 percent of the world’s population) Source: Annual “Freedom in the World” survey by Freedom House, 2005 http://www.freedomhouse.org/template.cfm?page=70&release=317
- 11. Source: Annual “Freedom in the World” survey by Freedom House, 2005 http://www.freedomhouse.org/uploads/pdf/Charts2006.pdf
- 12. What is this difference between “free” and “democratic”?
- 13. Liberal Democracy ► “Ifa country holds competitive, multiparty elections, we call it democratic” (Zakaria, 1997) ► “Constitutional liberalism … is not about the procedures for selecting government …” Liberal: An emphasis on individual liberty Constitutional: The rule of law ► Nothing to do with Liberal vs. Conservative
- 14. If people depend on information products for their individual well-being, does a market economy for information products interfere with their rights as citizens in a democratic society?
- 15. Decentralization vs. the old mass media model ► Production and distribution of -- Information Culture Knowledge ► These have been concentrated in fewer and fewer hands, over time ► Giant multinational corporations own the majority of media companies
- 17. Economics (1) ► Information is “non-rival” You give it away to other people, and you still have it ► Industrial goods (such as cars) are “rival” ► To make profit from non-rival goods, a commercial entity puts constraints on them E.g., copyrights and trademarks ► Benefits not only the seller -- also the creator (such as a writer or musician)
- 18. A Balancing Act ► Controllinginformation goods (such as books and videos) makes possible the production of more ► Too much control, however, would lead to less production ► Why? Because … existing information goods are used in the production of new ones -- “standing on the shoulders of giants” (Benkler, pp. 37-39)
- 19. When to Let Go ► Innovation might be more profitable than repeated revenues from the same old stuff (e.g., Disney animated films) ► Charging for custom work or consulting might be more profitable if you give some things away for free (e.g., lawyers) ► Putting clips on YouTube might bring more people into the movie theater
- 20. Why would a movie studio order the removal of a movie trailer?
- 21. Economics (2) ► Music business as an example: Huge expenses to produce and promote a new album ► Costs associated with physical production (e.g., CDs) and physical distribution ► In contrast, a band can produce an album cheaply, without a contract ► Distribution online – very low costs
- 22. You might care more about low start-up costs and less about large outputs
- 23. Inputs to Information Production 1. Existing information, culture, and knowledge (all are “non-rival” goods) 2. Mechanical and physical means for capturing, processing, producing the new items 3. Human communicative capacity: creativity, skill, experience, and cultural savvy (Benkler, p. 52)
- 24. Motivations ► People create and share new information for many different reasons ► Not all of these are material ► Not all creative efforts are made for the sake of money … or even fame ► “You have to play to win”? Maybe … you have to give to get
- 26. If the Internet is governed as a commons, will everything turn out okay?
- 27. Enclosure of the Commons ► Middle Ages, Europe: “Commons” were shared lands ► Villagers used them to hunt, plant crops, gather firewood ► “Enclosure” in one sense is building fences ► Enclosure is also private ownership ► What once was free and open to all becomes property of one
- 28. “... Each man is locked into a system that compels him to increase his herd without limit -- in a world that is limited. Ruin is the destination toward which all men rush, each pursuing his own best interest in a society that believes in the freedom of the commons. Freedom in a commons brings ruin to all.” (Hardin, 1968)
- 29. Open Source (1) ► The creator retains copyright ► But … the creator licenses the product for (re-)use by anyone ► You can copy, distribute, and modify it ► But … the copies you distribute MUST allow everyone else to do the same ► You retain copyright on your own contributions
- 30. Open Source (2) ► You can sell it, if you want to (e.g. Red Hat Linux) ► No bosses, deadlines, or schedules ► Unmanaged collaboration ► As of July 2002, the Linux OS listed 418 contributors from 35 countries
- 31. 3 Functions in the Process ► Utter (or create) content Mark or classify craters on a map of Mars Write a new Wikipedia article ► Assess relevance and credibility Rate or criticize the content Allow it to pass through a filter or “gate” ► Distribute the content; add value Pass it on, e.g. by linking to it Possibly enhance or improve the content
- 35. Who Can Play? ► Benkler doesn’t ask this question in pp. 1-90 ► All this peer-produced information comes from whom? People who … Have free time Have computer access Are literate and technology-literate ► Who can benefit? Anyone … who has access
- 36. The End The Wealth of Networks [ pages 1-90 ] All sources used are on the handout.
- 37. The Networked Information Economy Mindy McAdams University of Florida 2006