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The Economist On The Economics of Sharing

RCulpepper writes "The Economist, reliably the most insightful English-language news publication, discusses the economics of sharing, from OSS programmers' sharing time, to P2P users' sharing disk space and bandwidth. " True indeed (about The Economist, I have to remember to renew my subscription); one of the main supports for the article comes from Yochai Benkler latest piece, which is excellent.

14 of 345 comments (clear)

  1. Thoughts on sharing by JamesD_UK · · Score: 5, Insightful
    For a lot of open source project's and P2P networks it's not the case that developers and users are really sharing fairly.

    Most open source projects revolve around a core of developers with the odd donation of time and code from users who extend the code to suit their needs. Ditto with most P2P networks, most casual users are happy to leach whilst most of the bandwidth is provided by hardcore users. Perhaps the exception to this is Bittorrent where users are more inclinded to share fairly.

  2. Nice Advertisement by Mad+Hughagi · · Score: 5, Insightful

    Why does the /. story have to mainly concern itself with word-of-mouth advertising about the publication rather than the article?

    Sharing of information has proven very beneficial in science and there is no mention of this in the article. You'd think that this would be one of the first things that would come to mind when one thinks about innovation in ideas.

    --
    UBU
  3. They are different kinds of sharing! by manifoldronin · · Score: 5, Insightful

    I'm not sure presenting OSS and P2P in the same context of sharing is appropriate - sharing something you wrote yourself is one thing, sharing something some others wrote without those others' consent is another.

    --
    Tyranny isn't the worst enemy of a democracy. Cynicism is.
  4. The True Economics of OSS by OnanTheBarbarian · · Score: 5, Interesting

    Something that the article doesn't really mention, that helped explain a lot of things about corporate support of OSS, is a theory that (as far as I remember) Joel Spolsky wrote about. It's best explained by an analogy.

    The analogy runs as follows. Suppose that a street has a bunch of bun vendors and a bunch of people who sell sausages to put in the buns (wow, talk about decoupled designs). People might be willing to spend $1.50 for a bun plus a sausage - nominally $1 for the sausage and $0.50 for the bun.

    Now, suppose that someone in the sausage industry comes up with a way of "open-sourcing" buns - now buns are free! This happening, you've got a bunch of customers wandering around buying sausages with an extra $0.50 in their pockets. They were clearly willing to spend more on the sausage+bun combination, so maybe you can jack up your price to $1.10 or $1.20 (very unlikely you'll be able to go to $1.50).

    Of course, like all simplistic analogies, this depends on a lot of assumptions. For instance, we
    expect that the customer won't go off and buy something new (a 50 cent Coke, maybe).

    Now, think about companies that have major OSS support. The best example is IBM - which makes its money of hardware and services. Are they the sausage vendors in this case?

    I don't know if this is nonsense, but it's an interesting theory. If anyone has a good counter-argument, let's hear it. If anyone has a silly pun about "open-saucing" hot dogs, well, remember that I'm a computer scientist and can generate an enormous static charge from your keyboard to Get You.

  5. Re:Sure... by Daniel+Dvorkin · · Score: 5, Insightful

    and /. editors have to remember to remove personal notes from the stories.

    Why?

    Folks, /. is not a news organization, not in the sense you're apparently thinking. It's not The Economist or the NYT or Reuters or even, God help me, USA Today. It's basically a blog, where people write in with things they, in their personal opinions, consider interesting, and other people respond with their own opinions. If what you want is Just The Facts, Ma'am, then read the "Technology" section on the Yahoo newsfeed.

    --
    The correlation between ignorance of statistics and using "correlation is not causation" as an argument is close to 1.
  6. Re:in-crowd by The-Bus · · Score: 5, Interesting

    I don't remember the last time the Economist attacked anything as "communistic excess" -- and they're not a "tool of international corporatism" because they actually like true free markets without competition. Notice their articles on excessive executive pay, underperforming corporations, etc.

    I think that you probably haven't really read too much of it.

    --

    Small potatoes make the steak look bigger.

  7. Liberal, actually by rumblin'rabbit · · Score: 5, Insightful
    Actually, The Economist considers itself liberal, although in the traditional, rather than the American liberal=socialist sense.

    After many years of reading the Economist, I agree with their self-assessment.

    Having said that, I've never been comfortable with the 1-dimensional right/left political categorizations. People and politics are far more complicated than that.

  8. Re:in-crowd by j-b0y · · Score: 5, Insightful

    I think you're mistaking them for Forbes, maybe.

    Actually, they're pretty moderate and reasonable with their analyses, they advocate market solutions for problems that a market can solve i.e. most things.

    They go with the least-worst economic system (free-market with a small dash of government regulation to stop the worse excesses of capitalism) since that appears to have won the argument so far. So they obsess about what Greenspan says, but isn't that their job? That's the "Economist" bit in "The Economist".

    And hindsight is a wonderful thing. Nobody else was worrying about the Taliban at the time, either.

    --
    Please remain calm, there is no reason to pani... wait, where are you all going?
  9. Independant by Anonymous Coward · · Score: 5, Interesting

    The Economist, as someone else posted, certainly has their opinion of the world around them, like we all do. I do not always agree with their opinion, but rarely do I find what they have to say is grounded purely in ideology, without some decent reasoning and thought behind it. From what I have read, they tend to weigh each situation or leader, rather than stamping them "ok" or "not" according to whatever faction they belong to. For instance, despite being center-right in their politics, and despite supporting the war in Iraq (something I did not agree with myself), they have not spared the Bush administration criticism for making a mess of the situation.

    As to the "right wing propagandistic tool of international corporatism". Wow, good line if it's some sort of attempt at ironic hip retro-sixties radical leftism, but it doesn't have much to do with...well, reality.

    The Economist supported Kerry, after all, in the US elections. They have been quite positive about Linux for a long time. They are being sued by Silvio Berlusconi, Italy's right wing leader, because of their scathing attacks on his corruptness. This is hardly the sort of independant thoughts and writing that one would expect from a "propogandistic tool".

  10. That works until.... by AtariAmarok · · Score: 5, Funny
    "Fortunately for Linux, there's plenty of "soup" to go around"

    This works untiol SCO shows up and claims ownership of the lentils found in every bowl served, and demands that each soup-eater pay them $699.

    --
    Don't blame Durga. I voted for Centauri.
  11. Re:Economist is better than the rest... by Malc · · Score: 5, Interesting

    Even as a socialist, I think one can appreciate The Economist's slant towards liberty/freedom and individual responsibility. They might write about economic issues one week that would make an American Republican proud, yet in the same publication come out strongly in support of same-sex marriage. They often discuss our rights, but nearly always counter-balanced by our obligations - this isn't always popular with many people as it's common in modern society to demand one's rights, but ignore one's responsibilities. Personally I find it can be read from the point of view of a scientist: they seem to write things up in a clinical detached way whether or not the author actually believes it or not. I can then take the facts as presented and decide whether I want to agree or not with any opinions presented.

  12. Re:I'm just waiting ... by pcb · · Score: 5, Insightful

    Generally, they favor whatever they think will be good for business...

    While, I agree that The Economist is generally 'pro-capitalist', I would not call them pro-business, but rather pro-competition; a distinction most people miss. Most businesses, ironically enough, dislike competition and are therefore anti-capitalists.

    PCB

    --
    'Men never commit evil so fully and joyfully as when they do it for religious convictions.' B. Pascal
  13. Re:Sure... by gathas · · Score: 5, Insightful
    Ummm, have you actually read the Economist? If anything it has an Eisenhower Republican slant. I would say they tend to be liberal or tolerant on social issues, but very pro-Business, pro-free markets on business issues. They are "liberal" in the classic sense of open markets and economies, not in the very narrow way that the U.S. has co-opted this term. It would be no suprise that many Democrats would not like the Economist.

    If you have read the Economist and don't realize how important free markets and trade are to them, then there is no hammer big enough to hit you over the head with.

    I always think it is a shame that this county (US) doesn't have a party that thinks like the Economist. Bush might like to claim this philosphy, but his strain of Republicanism is to concerned about what you do in the bedroom to fit this model.

  14. There is a word for this by Steeltoe · · Score: 5, Insightful


    For a lot of open source project's and P2P networks it's not the case that developers and users are really sharing fairly.

    Most open source projects revolve around a core of developers with the odd donation of time and code from users who extend the code to suit their needs. Ditto with most P2P networks, most casual users are happy to leach whilst most of the bandwidth is provided by hardcore users. Perhaps the exception to this is Bittorrent where users are more inclinded to share fairly.


    It's not greed, since it's about sharing.

    I don't know what to call it, fear of leeching or something?

    To sum it up: When you share, if you constantly think about if everybody else is sharing as much as you, you'll end up not sharing.

    Period.

    When you share, you share.

    If people leech, don't bother.

    If they spam or hog resources, limit the resources with technical solutions, but you still don't bother.

    This is the truth of sharing. The more you give, the more you get. Karma is absolute truth, but you don't give a damn about it. If you do, you get in trouble. If you analyse it all, you will stop the process itself.

    So what if you share more than the next guy for some times? If you think about it, worrying about who is on top is really capitalism.

    Strange thought, huh?

    If you happen to have more / willing to share more, for some time, then just think what an opportunity!