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Posts Tagged ‘platforms

“In a free market the people are free, the ideas are locked up”*…

 

gift

 

Back when I first studied gift exchange, I dismissed its economic importance—after all, it reflects only a tiny portion of all our transactions. Perhaps it might interest an anthropologist, but only as a kind of curiosity item, a refreshing but impractical alternative to the real substance of economic life. But as I see it now, the gift economy is much larger than I realized—in fact, it’s almost as large as the transaction-based economy. For a start, I’ve seen its predominance in my own life. My wife and I don’t charge my children for their meals or the hours of service we provide them. My friends dealing with elder care or community service or church activities operate off-the-grid, so to speak—at least from a conventional economic perspective. These are gift exchanges, pure and simple, and they are everywhere you look, even in a modern capitalist society.

But I’m concerned here with a different class of activities, ones that straddle these two spheres—and are hard to classify for that very reason. Artistic or creative pursuits, endeavors that are typically pursued for the intrinsic joy of sharing one’s gifts, are also frequently commoditized and placed on the market. Are they part of the gift economy or the transaction economy?…

The estimable Ted Gioia explores: “Gratuity: Who Gets Paid When Art Is Free.”

[image above: source]

* Lewis Hyde, The Gift: Creativity and the Artist in the Modern World

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As we share and share alike, we might recall that it was on this date in 1927 that Mae West was sentenced to 10 days in a workhouse on Roosevelt Island (known then as “Welfare Island”) and fined $500 for obscenity for her play Sex… despite the fact that the play had run over a year before the police raided, and had been seen by 325,000 people– including members of the police department and their wives, judges of the criminal courts, and seven members of the district attorney’s staff.

In the event, she served eight days of her sentence, receiving two days off of time for “good behavior”– and the resulting publicity did great things for Ms. West’s notoriety nationwide.

source

 

Written by LW

April 19, 2020 at 1:01 am

“Of course our lives are regulated. When you come to a stop sign, you stop; if you want to go fishing, you get a license; if you want to shoot ducks, you can shoot only three ducks. The alternative is dead bodies at the intersection, no fish, and no ducks. OK?”*…

 

Regulation

 

After a characteristically-clear explanation of the ways in which the “monopoly practice” concerns around Google, Amazon, and the other on-line giants are different from those the U.S. has traditionally tried to manage– they limit/manage choice– the ever-illuminating Tim O’Reilly argues for a fresh approach to anti-trust:

So how are we therefore best to decide if these Big Tech platforms need to be regulated?

In one famous exchange, Bill Gates, the founder and former CEO of Microsoft, told Chamath Palihapitiya, the one-time head of the Facebook platform:

“This isn’t a platform. A platform is when the economic value of everybody that uses it, exceeds the value of the company that creates it. Then it’s a platform.”

Given this understanding of the role of a platform, regulators should be looking to measure whether companies like Amazon or Google are continuing to provide opportunity for their ecosystem of suppliers, or if they’re increasing their own returns at the expense of that ecosystem.

Rather than just asking whether consumers benefit in the short term from the companies’ actions, regulators should be looking at the long-term health of the marketplace of suppliers—they are the real source of that consumer benefit, not the platforms alone. Have Amazon, Apple, or Google

earned

their profits, or are they coming from monopolistic rents?

How might we know whether a company operating an algorithmically managed marketplace is extracting rents rather than simply taking a reasonable cut for the services it provides? The first sign may not be that it is raising prices for consumers, but that it is taking a larger percentage from its suppliers, or competing unfairly with them.

Before antitrust authorities look to remedies like breaking up these companies, a good first step would be to require disclosure of information about the growth and health of the supply side of their marketplaces. The statistics about the growth of its third-party marketplace that Bezos trumpeted in his shareholder letter tell only half the story. The questions to ask are who profits, by how much, and how that allocation of rewards is changing over time…

Data is the currency of these companies. It should also be the currency of those looking to regulate them. You cannot regulate what you don’t understand. The algorithms that these companies use may be defended as trade secrets, but their outcomes should be open to inspection.

An important read: “Antitrust regulators are using the wrong tools to break up Big Tech.”

* Molly Ivins

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As we bust trusts, we might recall that it was on this date in 1974 that the Supreme Court handed down its unanimous decision in United States v. Nixon, ordering him to deliver tape recordings and other subpoenaed materials to a federal district court.  Special prosecutor Leon Jaworski had subpoenaed the tapes as part of on-going impeachment proceedings; the White House had sued to quash; and the decision is widely viewed as a crucial precedent limiting the power of any U.S. president to claim executive privilege.

nixon_sony source

 

 

Written by LW

July 24, 2019 at 1:01 am

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