“Coase’s Penguin” and the Motives for “Commons-Based Peer Production”

(p. 108) Noted Yale law professor Yochai Benkler has a theory. In a widely circulated and famous essay on the Internet called “Coase’s Penguin,” he offered his thinking on why people participate in efforts such as Linux and other “free” projects. There was already a culture, before Wikipedia, of folks donating their time, effort, and skills to the collective good for no monetary gain or immediate compensation. Benkler observed this part of the hacker ethos and was curious to know what the common thread was.

He dubbed it “commons-based peer production.” It’s a fancy moniker for the phenomenon of people working together toward the same end–creating computer code or content that is free to be copied, distributed, used, and modified by others.
Benkler believes the Internet and the “free culture” movement have allowed individuals to connect and combine their efforts in ways unprecedented in history. The legal academic is not shy to combine scholarship outside his area of training by drawing on economics, sociology, and technology to form his theory.
According to Benkler, if monetary rewards and the creation of corporate firms have been the accepted driving force for human innovation and progress, there has to be something else driving volunteers in Linux, Wikipedia, and other “free” projects that have become so pervasive and monumental in the digital age.
He asserts the motivation comes from two main things other than money: the “socio-psychological” reward of interacting with others, and the “hedonic” personal gratification of the task.
Wikipedia’s magic occurs when these two things come together. One person’s personal affection and indulgence—mapmaking, grammar checking, baseball statistics, history of stamps—easily finds a home in Wikipedia’s amalgam of topics, where it also feeds into and inspires activities by others.

Source:
Lih, Andrew. The Wikipedia Revolution: How a Bunch of Nobodies Created the World’s Greatest Encyclopedia. New York: Hyperion, 2009.

Daniel Pink on What Motivates Workers to Work Well

DriveBK.jpg

Source of book image: online version of the WSJ review quoted and cited below.

Daniel Pink’s Free Agent Nation was a provocative account of how the entrepreneur benefits from being an entrepreneur. I enjoyed the book, and reference it frequently.
I have not had a chance to read Pink’s recent Drive, but hope to do so soon.

(p. A17) Science, Mr. Pink says, has shown that we are motivated as much intrinsically, by the sheer joy and purpose of certain activities, as extrinsically, by rewards like pay raises and promotions.

The science that Mr. Pink is referring to rests largely on the work of Edward Deci and Richard Ryan at the University of Rochester and Mihaly Csikszentmihalyi at Claremont Graduate University. These three researchers have found that we do our best work when motivated from within, when we have control over our time and decisions and when we feel a deep sense of purpose. Under such conditions, we can achieve real mastery over whatever it is that we do.
The modern workplace, Mr. Pink laments, is too often set up to deny us this opportunity. Firms that hope to optimize efficiency by making their employees clock in and out, attend compulsory meetings, and receive pay for performance are de-motivating through excessive control. What they should be doing, he argues, is giving workers the chance to do their best work by granting them more autonomy and helping them to achieve the mastery that may come with it.
Mr. Pink cites an Australian software firm, Atlassian, that allows its programmers 20% of their time to work on any software problem they like, provided it is not part of their regular job. The programmers turn out to be much more efficient with that 20% of their time than they are with their regular work hours. Atlassian credits the 20% with many of its innovations and its high staff retention. Companies as large as Google and 3M have similar programs that have produced everything from Google News to the Post-It note.
. . .
. . . : Beyond serving our basic needs, money doesn’t buy happiness. We need a greater purpose in our lives. Our most precious resource is time. We respond badly to conditions of servitude, whether the lash of the galley master or the more subtle enslavement of monthly paychecks, quarterly performance targets and the fear of losing health insurance. Work that allows us to feel in control of our lives is better than work that does not.     . . . , these lessons are worth repeating, and if more companies feel emboldened to follow Mr. Pink’s advice, then so much the better.

For the full review, see:
PHILIP DELVES BROUGHTON. “More Than a Paycheck; Workers are more efficient, loyal and creative when they feel a sense of purpose–when work has meaning.” The Wall Street Journal (Tues., Feb. 2, 2010): A17.
(Note: ellipses added.)
(Note: the online version of the review is dated Feb. 5, 2010.)

Philosopher Duped by Hoax Because He Failed to Consult Wikipedia

(p. A4) PARIS — For the debut of his latest weighty title, “On War in Philosophy,” the French philosopher Bernard-Henri Lévy made the glossy spreads of French magazines with his trademark panache: crisp, unbuttoned white Charvet shirts, golden tan and a windswept silvery mane of hair.

But this glamorous literary campaign was suddenly marred by an absolute philosophical truth: Mr. Lévy backed up the book’s theories by citing the thought of a fake philosopher. In fact, the sham philosopher has never been a secret, and even has his own Wikipedia entry.
In the uproar that followed over the rigors of his research, Mr. Lévy on Tuesday summed up his situation with one e-mailed sentence: “My source of information is books, not Wikipedia.”

For the full story, see:

DOREEN CARVAJAL. “Philosopher Left to Muse on Ridicule Over a Hoax.” The New York Times (Weds., February 10, 2010): A4.

(Note: the online version of the article is dated February 9, 2010.)

“Expert Scholarship” Versus “People of Dubious Background”

(p. 71) The acknowledgment, by name, of volunteers in the preface sections of the OED is akin to Wikipedia’s edit history, where one can inspect who contributed to each article. Some Oxford contributors were professors, some royalty, but most were ordinary folks who answered the call. Winchester, in The Professor and the Madman: A Tale of Murder, Insanity, and the Making of the Oxford English Dictionary, tells the story of the “madman” William Chester Minor, a U.S. Civil War survivor whose “strange and erratic behavior” resulted in him shooting an “innocent working man” to death in the street in Lambeth. He was sent to Broadmoor asylum for criminal lunatics. He discovered the OED as a project around 1881, when he saw the “Appeal for Readers” in the library, and worked for the next twenty-one years contributing to the project, receiving notoriety as a contributor “second only to the contributions of Dr. Fitzedward Hall in enhancing our illustration of the literary history of individual words, phrases and constructions.” Minor did something unusual in not just sending submissions, but having his own cataloging system such that the dictionary editors could send a postcard and “out the details flowed, in abundance and always with unerring accuracy.” Until Minor and Murray met in January 1891, no one working with (p. 72) the OED knew their prolific contributor was a madman and murderer housed at Broadmoor.

As we will see in later chapters, a common question of the wiki method is whether one can trust information created by strangers and people of dubious background. But the example of the OED shows that using contributors rather than original expert scholarship is not a new phenomenon, and that projects built as a compendium of primary sources are well suited for harnessing the power of distributed volunteers.

Source:
Lih, Andrew. The Wikipedia Revolution: How a Bunch of Nobodies Created the World’s Greatest Encyclopedia. New York: Hyperion, 2009.
(Note: italics in original.)

Market Entrepreneurs Versus Political Entrepreneurs

HillJamesRailroad2010-03-16.jpg“James J. Hill (center) built a great railroad on his own dime.” Source of caption and photo: online version of the WSJ commentary quoted and cited below.

(p. A17) Let’s bring back the robber barons.

“Robber baron” became a term of derision to generations of American students after many earnest teachers made them read Matthew Josephson’s long tome of the same name about the men whose enterprise drove the American industrial age from 1861 to 1901.
Josephson’s cast of pillaging villains was comprehensive: Rockefeller, Carnegie, Vanderbilt, Morgan, Astor, Jay Gould, James J. Hill. His table of contents alone shaped impressions of those times: “Carnegie as ‘business pirate’.” “Henry Frick, baron of coke.” “Terrorism in Oil.” “The sack of California.”
I say, bring ’em back, and the sooner the better. What we need, a lot more than a $1,000 tax credit, are industries no one has thought of before. We need vision, vitality and commercial moxie. This government is draining it away.
The antidote to Josephson’s book is a small classic by Hillsdale College historian Burton W. Folsom called “The Myth of the Robber Barons: A New Look at the Rise of Big Business in America” (Young America’s Foundation). Prof. Folsom’s core insight is to divide the men of that age into market entrepreneurs and political entrepreneurs.
Market entrepreneurs like Rockefeller, Vanderbilt and Hill built businesses on product and price. Hill was the railroad magnate who finished his transcontinental line without a public land grant. Rockefeller took on and beat the world’s dominant oil power at the time, Russia. Rockefeller innovated his way to energy primacy for the U.S.
Political entrepreneurs, by contrast, made money back then by gaming the political system. Steamship builder Robert Fulton acquired a 30-year monopoly on Hudson River steamship traffic from, no surprise, the New York legislature. Cornelius Vanderbilt, with the slogan “New Jersey must be free,” broke Fulton’s government-granted monopoly.

For the full commentary, see:
DANIEL HENNINGER. “Bring Back the Robber Barons.” The Wall Street Journal (Mon., MARCH 4, 2010): A17.
(Note: the online version of the article is dated MARCH 3, 2010.)

The full reference for Folsom’s book is:
Folsom, Burton W. The Myth of the Robber Barons. 4th ed: Young America’s Foundation, 2003.

Like Wikipedia, Oxford English Dictionary Was Built by Amateur Volunteers

(p. 70) The venerable Oxford English Dictionary (OED), the history of which is masterfully documented by Simon Winchester in The Meaning of Everything and The Professor and the Madman, was in fact possible only through the soliciting of contributions, and the receipt of thousands of “slips” of paper, each with words and definitions found by readers and volunteers.

The OED didn’t start out with such a grand title, and was first a project of the Philological Society in Great Britian (sic), as a response to what they saw as the popular dictionaries of Noah Webster and Samuel Johnson not doing the “English language justice.” In 1857, it was started as the Unregistered Words Committee, and the job was to comb through all forms of media of the era (printed matter, song, spoken word) leading to the inventorying and cataloging of English words. The three founders, Chenevix Trench, Herbert Coleridge, and Frederick Furnivall, sent out a notice in November of that year: “AN APPEAL TO THE ENGLISH-SPEAKING AND ENGLISH-READING PUBLIC TO READ BOOKS AND MAKE EXTRACTS FOR THE PHILOLOGICAL SOCIETY’S NEW ENGLISH DICTIONARY.” Specifically, it described the project thusly:

Accordingly, in January 1859. the Society issued their Proposal for the publication of a New English Dictionary, in which the characteristics of the proposed work were explained, and an appeal made to the English and American public to assist in collecting the raw materials for the work, these materials consisting of quotations illustrating the use of English words by all writers of all ages and in all senses, each quotation being made on a uniform plan on a half-sheet of notepaper that they might in due course be arranged and classified alphabetically and significantly. This Appeal met with generous response: some hundreds of volunteers began to read books, make quotations and send in their slips to “sub-editors who volunteered each to take charge of a letter or part of one, and by whom the slips were in turn further arranged, classified, and (p. 71) to some extent used as the basis of definitions and skeleton schemes of the meanings of words in preparation for the Dictionary.

The notice was sent to “bookshops and libraries across the English-speaking world” and, under the direction of Scottish lexicographer James Murray, saw its growth blossom. In 1879, Oxford University Press formally agreed to be publisher and employed Murray to take on the editorship. Slips sent in to the effort were filed away in pigeonholes at the Scriptorium, a corrugated metal building Mill Hill School erected specifically for the effort of sorting and housing the staff to work on the dictionary.

Source:
Lih, Andrew. The Wikipedia Revolution: How a Bunch of Nobodies Created the World’s Greatest Encyclopedia. New York: Hyperion, 2009.
(Note: italics and caps in original.)

The block quote within the Lih block quote is from p. 108 of:
Winchester, Simon. The Meaning of Everything: The Story of the Oxford English Dictionary. paperback ed. New York: Oxford University Press, USA, 2003.

At Odds with Academic Culture, Wiki Programmer Adams Released Early and Released Often

(p. 67) Adams did something unexpected for the academic community, but common in open source culture–release early and release often. Within weeks of its launch, one of the biggest annoyances of Wikipedia was resolved directly by the software’s author. It was not because of monetary compensation or any formal request, but simply because the author was interested in solving it on his own time, and sharing it with others. It was the hacker ethos, and it had crossed from the domain of tech programmers into the world of encyclopedias.

Source:
Lih, Andrew. The Wikipedia Revolution: How a Bunch of Nobodies Created the World’s Greatest Encyclopedia. New York: Hyperion, 2009.

When Wales Earned “Enough”

(p. 22) By 1998, the business was good enough that Wales wanted to leave not just the world of Chicago Options Associates but the city of Chicago too. As a trader, he had made enough money to live comfortably for a while, or as he would say, “I made out OK” and earned “enough.” With no incentive to stay in the Windy City, and with the warmer weather of California calling, Wales and Shell decided they could relocate to San Diego and run the business from there. Wales and his wife, Christine, made the move in 1998.

Source:
Lih, Andrew. The Wikipedia Revolution: How a Bunch of Nobodies Created the World’s Greatest Encyclopedia. New York: Hyperion, 2009.

Wikipedia Works in Practice, Not in Theory

(p. 20) Jimmy walked into the offices of Chicago Options Associates in 1994 and met the CEO Michael Davis for a job interview. Davis had looked over Wales’s academic publication about options pricing.

“It was impressive looking,” says Wales wryly about the paper. “It was a very theoretical paper but it wasn’t very practical.” But Davis was sufficiently intrigued, as he wanted someone like Wales to pore over the firm’s financial models and help improve them. So he took on young Wales, who seemed to be sharp and had acumen for numbers. Little did either of them know they would have a long road ahead together, with Wikipedia in the future.
Wales’s first job was to go over the firm’s current pricing models. “What was really fascinating was that it was truly a step beyond what I’d seen in academia,” he recalls. “It was very practical, and didn’t have a real theoretical foundation.” Wales was intrigued that the firm traded on principles that worked in practice, not in theory. (This is something he would say about his future endeavor Wikipedia.) “Basically they just knew in the marketplace that the existing models were wrong.”

Source:
Lih, Andrew. The Wikipedia Revolution: How a Bunch of Nobodies Created the World’s Greatest Encyclopedia. New York: Hyperion, 2009.
(Note: italics in original.)

Irritation is “the Source of Serious Innovation”

(p. 299) Innovation Source No. 1 is Pissed-Off People.

Irritation. Anger. That’s the number one source of serious innovation. Which must, of course, be coupled with spine–a willingness to take on the powers that be. And risk it all.

Source:
Peters, Tom. Re-Imagine! London: DK, 2003.
(Note: italics, bold, and larger size font, in original.)

The Entrepreneurial Epistemology of Wikipedia

Wikipedia-RrevolutionBK2010-02-08.jpg

Source of book image: http://kellylowenstein.files.wordpress.com/2009/04/wikipedia-revolution1.jpg

Wikipedia is a very unexpected and disruptive institution. Amateurs have produced an encyclopedia that is bigger, deeper, more up-to-date, and arguably of at least equal accuracy, with the best professional encyclopedias, such as Britannica.
I learned a lot from Lih’s book. For instance I did not know that the founders of Wikipedia were admirers of Ayn Rand. And I did not know that the Oxford English Dictionary was constructed mainly by volunteer amateurs.
I also did not know anything about the information technology precursors and the back-history of the institutions that helped Wikipedia to work.
I learned much about the background, values, and choices of Wikipedia entrepreneur “Jimbo” Wales. (Jimbo Wales seems not to be perfect, but on balance to be one of the ‘good guys’ in the world—one of those entrepreneurs who can be admired for something beyond their particular entrepreneurial innovation.)
Lih’s book also does a good job of sketching the problems and tensions within Wikipedia.
I believe that Wikipedia is a key step in the development of faster and better institutions of knowledge generation and communication. I also believe that substantial further improvements can and will be made.
Most importantly, I think that you can only go so far with volunteers–ways must be found to reward and compensate.
In the meantime, much can be learned from Lih. In the next few weeks, I will be quoting a few passages that I found especially illuminating.

Book discussed:
Lih, Andrew. The Wikipedia Revolution: How a Bunch of Nobodies Created the World’s Greatest Encyclopedia. New York: Hyperion, 2009.