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Tiberius Brastaviceanu

BeagleBoard.org - 2014-01-29-project-spotlight-beedome - 0 views

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    "The BeeDome is a computerized system based on the Sitara-processor-powered BeagleBone Black computer as well as a specially designed "cape" plug-in board. BeagleBone Black is connected to the Internet, and stats are uploaded periodically to a website so that the company can closely monitor the nucs. The BeeDome also integrates GE Telaire T6613/T6615 and MG811 sensors to monitor the CO2 level; DS18B20 sensors to monitor temperature; DH22 sensors to monitor humidity and temperature; and Sharp COM-10636 SSR devices to control 120V devices. "Bee" sure to check out ForestDew Apiaries' website for more information on this "unbeelievable" project!"
Francois Bergeron

Conference Detail for Industrial and Commercial Applications of Smart Structures Techno... - 0 views

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    "Three-axis distributed fiber optic strain measurement in 3D woven composite structures   Paper 8690-6 Time: 1:50 PM - 2:10 PM Author(s): Matt Castellucci, Evan M. Lally, Sandra Klute, Luna Innovations Inc. (United States); David Lowry, NASA Johnson Space Ctr. (United States) Hide Abstract Add to My Schedule  Recent advancements in composite materials technologies have broken further from traditional designs and require advanced instrumentation and analysis capabilities. Success or failure is highly dependent on design analysis and manufacturing processes. By monitoring smart structures throughout manufacturing and service life, residual and operational stresses can be assessed and structural damage identified. Composite smart structures can be manufactured by integrating fiber optic sensors into existing composite materials processes such as layup, filament winding and three-dimensional weaving. In this work optical fiber was integrated into 3D woven composite parts at a commercial woven products manufacturing facility. The fiber was then used to monitor the structures during a VARTM manufacturing process, and subsequent static and dynamic testing. Low cost telecommunications-grade optical fiber acts as the sensor using a high resolution commercial Optical Frequency Domain Reflectometer (OFDR) system providing distributed strain measurement at spatial resolutions as low as 2mm. Strain measurements using the optical fiber sensors are correlated to resistive strain gauge measurements during static structural loading."
Kurt Laitner

A StumbleUpon for Design Geeks | Co.Exist: World changing ideas and innovation - 0 views

  • While there’s no "like" button to declare your affection for certain content, the app monitors how much time you spend with an article, whether you scroll all the way down, and whether or not you share it via social media, and makes assessments based on those data points.
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    "While there's no "like" button to declare your affection for certain content, the app monitors how much time you spend with an article, whether you scroll all the way down, and whether or not you share it via social media, and makes assessments based on those data points." An example from a colleague of an application that uses ambient metrics to determine what you like without you needing to explicitly rank it - much more effective and efficient than explicit ranking, they could add _who_ you share it with to further qualify (shared widely, narrowly, to respected peers, social peers, or senior peers, all of which are also ambiently determined, possibly in combination with some user provided metadata through other processes)
Kurt Laitner

How Many Kinds of Property are There? - 0 views

  • Whenever a group of people depend on a resource that everybody uses but nobody owns, and where one person’s use effects another person’s ability to use the resource, either the population fails to provide the resource, overconsumes and/or fails to replenish it, or they construct an institution for undertaking and managing collective action.
  • Common-pool resources may be owned by national, regional, or local [1]governments; by [2] communal groups; by [3] private individuals or corporations; or used as open access resources by whomever can gain access
  • Based on her survey, Ostrom distilled this list of common design principles from the experience of successful governance institutions: Clearly defined boundaries. Individuals or households who have rights to withdraw resource units from the CPR must be clearly defined, as must the boundaries of the CPR itself. Congruence between appropriation and provision rules and local conditions. Appropriation rules restricting time, place, technology, and/or quantity of resource units are related to local conditions and to provision rules requiring labour, material, and/or money. Collective-choice arrangements. Most individuals affected by the operational rules can participate in modifying the operational rules [how refreshing. Standing!]. Monitoring. Monitors, who actively audit CPR conditions and appropriator behavior, are accountable to the appropriators or are the appropriators. Graduated sanctions. Appropriators who violate operational rules are likely to be assessed graduated sanctions (depending on the seriousness and context of the offence) by other appropriators, by officials accountable to these appropriators, or by both. Conflict-resolution mechanisms. Appropriators and their officials have rapid access to low-cost local arenas to resolve conflicts among appropriators or between appropriators and officials. Minimal recognition of rights to organize. The rights of appropriators to devise their own institutions are not challenged by external governmental authorities. For CPRs that are parts of larger systems: Nested enterprises. Appropriation, provision, monitoring, enforcement, conflict resolution, and governance activities are organized in multiple layers of nested enterprises.
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    Good review of Ostrom and Bollier's definitions of commons and governance approaches to this property class
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    This paper is mostly about commons... the title is misleading.
Francois Bergeron

Data-Oriented Contract.pdf - 1 views

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    (submited by Bob) Computable Contracts This Article explains how and why firms are representing certain contractual obligations as computer data. terms. This Article explains how parties can effectively "translate" certain contractual criteria into a comparable set of computer-processable rules. This can have the effect of significantly reducing transaction costs associated with contract monitoring and compliance as compared to the traditional written-language contracting paradigm.
Francois Bergeron

sensoraide - 1 views

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    "SensorAide is a web remote monitoring platform for Wireless Sensor Networks, specialized for agriculture and farming. SensorAide stores data on the cloud and provides visual meaningful and actionable real time representations. " found by Yasir on Startup Chile
Tiberius Brastaviceanu

Is Shame Necessary? | Conversation | Edge - 0 views

  • What is shame's purpose? Is shame still necessary?
  • Shame is what is supposed to occur after an individual fails to cooperate with the group.
  • Whereas guilt is evoked by an individual's standards, shame is the result of group standards. Therefore, shame, unlike guilt, is felt only in the context of other people.
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  • Many animals use visual observations to decide whether to work with others.
  • humans are more cooperative when they sense they're being watched.
  • The feeling of being watched enhances cooperation, and so does the ability to watch others. To try to know what others are doing is a fundamental part of being human
  • Shame serves as a warning to adhere to group standards or be prepared for peer punishment. Many individualistic societies, however, have migrated away from peer punishment toward a third-party penal system
  • Shame has become less relevant in societies where taking the law into one's own hands is viewed as a breach of civility.
  • Many problems, like most concerning the environment, are group problems. Perhaps to solve these problems we need a group emotion. Maybe we need shame.
  • Guilt prevails in many social dilemmas
  • It is perhaps unsurprising that a set of tools has emerged to assuage this guilt
  • Guilt abounds in many situations where conservation is an issue.
  • The problem is that environmental guilt, though it may well lead to conspicuous ecoproducts, does not seem to elicit conspicuous results.
  • The positive effect of idealistic consumers does exist, but it is masked by the rising demand and numbers of other consumers.
  • Guilt is a valuable emotion, but it is felt by individuals and therefore motivates only individuals. Another drawback is that guilt is triggered by an existing value within an individual. If the value does not exist, there is no guilt and hence no action
  • Getting rid of shaming seems like a pretty good thing, especially in regulating individual behavior that does no harm to others. In eschewing public shaming, society has begun to rely more heavily on individual feelings of guilt to enhance cooperation.
  • five thousand years ago, there arose another tool: writing
  • Judges in various states issue shaming punishments,
  • shaming by the state conflicts with the law's obligation to protect citizens from insults to their dignity.
  • What if government is not involved in the shaming?
  • Is this a fair use of shaming? Is it effective?
  • Shaming might work to change behavior in these cases, but in a world of urgent, large-scale problems, changing individual behavior is insignificant
  • vertical agitation
  • Guilt cannot work at the institutional level, since it is evoked by individual scruples, which vary widely
  • But shame is not evoked by scruples alone; since it's a public sentiment, it also affects reputation, which is important to an institution.
  • corporate brand reputation outranked financial performance as the most important measure of success
  • shame and reputation interact
  • in our early evolution we could gauge cooperation only firsthand
  • The need to accommodate the increasing number of social connections and monitor one another could be
  • why we learned to speak.1
  • Language
  • Shaming, as noted, is unwelcome in regulating personal conduct that doesn't harm others. But what about shaming conduct that does harm others?
  • allowed for gossip, a vector of social information.
  • in cooperation games that allowed players to gossip about one another's performance, positive gossip resulted in higher cooperation.
  • Of even greater interest, gossip affected the players' perceptions of others even when they had access to firsthand information.
  • Human society today is so big that its dimensions have outgrown our brains.
  • What tool could help us gossip in a group this size?
  • We can use computers to simulate some of the intimacy of tribal life, but we need humans to evoke the shame that leads to cooperation. The emergence of new tools— language, writing, the Internet—cannot completely replace the eyes. Face-to-face interactions, such as those outside Trader Joe's stores, are still the most impressive form of dissent.
  • what is stopping shame from catalyzing social change? I see three main drawbacks:
  • Today's world is rife with ephemeral, or "one-off," interactions.
  • Research shows, however, that if people know they will interact again, cooperation improves
  • Shame works better if the potential for future interaction is high
  • In a world of one-off interactions, we can try to compensate for anonymity with an image score,
  • which sends a signal to the group about an individual's or institution's degree of cooperation.
  • Today's world allows for amorphous identities
  • It's hard to keep track of who cooperates and who doesn't, especially if it's institutions you're monitoring
  • Shaming's biggest drawback is its insufficiency.
  • Some people have no shame
  • shame does not always encourage cooperation from players who are least cooperative
  • a certain fraction of a given population will always behave shamelessly
  • if the payoff is high enough
  • There was even speculation that publishing individual bankers' bonuses would lead to banker jealousy, not shame
  • shame is not enough to catalyze major social change
  • This is why punishment remains imperative.
  • Even if shaming were enough to bring the behavior of most people into line, governments need a system of punishment to protect the group from the least cooperative players.
  • Today we are faced with the additional challenge of balancing human interests and the interests of nonhuman life.
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    The role of non-rational mechanisms in convergence - social emotions like shame and guilt 
Tiberius Brastaviceanu

Access control - Wikipedia, the free encyclopedia - 0 views

  • The act of accessing may mean consuming, entering, or using.
  • Permission to access a resource is called authorization.
  • Locks and login credentials are two analogous mechanisms of access control.
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  • Geographical access control may be enforced by personnel (e.g., border guard, bouncer, ticket checker)
  • n alternative of access control in the strict sense (physically controlling access itself) is a system of checking authorized presence, see e.g. Ticket controller (transportation). A variant is exit control, e.g. of a shop (checkout) or a country
  • access control refers to the practice of restricting entrance to a property, a building, or a room to authorized persons
  • can be achieved by a human (a guard, bouncer, or receptionist), through mechanical means such as locks and keys, or through technological means such as access control systems like the mantrap.
  • Physical access control is a matter of who, where, and when
  • Historically, this was partially accomplished through keys and locks. When a door is locked, only someone with a key can enter through the door, depending on how the lock is configured. Mechanical locks and keys do not allow restriction of the key holder to specific times or dates. Mechanical locks and keys do not provide records of the key used on any specific door, and the keys can be easily copied or transferred to an unauthorized person. When a mechanical key is lost or the key holder is no longer authorized to use the protected area, the locks must be re-keyed.[citation needed] Electronic access control uses computers to solve the limitations of mechanical locks and keys. A wide range of credentials can be used to replace mechanical keys. The electronic access control system grants access based on the credential presented. When access is granted, the door is unlocked for a predetermined time and the transaction is recorded. When access is refused, the door remains locked and the attempted access is recorded. The system will also monitor the door and alarm if the door is forced open or held open too long after being unlocked
  • Credential
  • Access control system operation
  • The above description illustrates a single factor transaction. Credentials can be passed around, thus subverting the access control list. For example, Alice has access rights to the server room, but Bob does not. Alice either gives Bob her credential, or Bob takes it; he now has access to the server room. To prevent this, two-factor authentication can be used. In a two factor transaction, the presented credential and a second factor are needed for access to be granted; another factor can be a PIN, a second credential, operator intervention, or a biometric input
  • There are three types (factors) of authenticating information:[2] something the user knows, e.g. a password, pass-phrase or PIN something the user has, such as smart card or a key fob something the user is, such as fingerprint, verified by biometric measurement
  • Passwords are a common means of verifying a user's identity before access is given to information systems. In addition, a fourth factor of authentication is now recognized: someone you know, whereby another person who knows you can provide a human element of authentication in situations where systems have been set up to allow for such scenarios
  • When a credential is presented to a reader, the reader sends the credential’s information, usually a number, to a control panel, a highly reliable processor. The control panel compares the credential's number to an access control list, grants or denies the presented request, and sends a transaction log to a database. When access is denied based on the access control list, the door remains locked.
  • A credential is a physical/tangible object, a piece of knowledge, or a facet of a person's physical being, that enables an individual access to a given physical facility or computer-based information system. Typically, credentials can be something a person knows (such as a number or PIN), something they have (such as an access badge), something they are (such as a biometric feature) or some combination of these items. This is known as multi-factor authentication. The typical credential is an access card or key-fob, and newer software can also turn users' smartphones into access devices.
  • An access control point, which can be a door, turnstile, parking gate, elevator, or other physical barrier, where granting access can be electronically controlled. Typically, the access point is a door. An electronic access control door can contain several elements. At its most basic, there is a stand-alone electric lock. The lock is unlocked by an operator with a switch. To automate this, operator intervention is replaced by a reader. The reader could be a keypad where a code is entered, it could be a card reader, or it could be a biometric reader. Readers do not usually make an access decision, but send a card number to an access control panel that verifies the number against an access list
  • monitor the door position
  • Generally only entry is controlled, and exit is uncontrolled. In cases where exit is also controlled, a second reader is used on the opposite side of the door. In cases where exit is not controlled, free exit, a device called a request-to-exit (REX) is used. Request-to-exit devices can be a push-button or a motion detector. When the button is pushed, or the motion detector detects motion at the door, the door alarm is temporarily ignored while the door is opened. Exiting a door without having to electrically unlock the door is called mechanical free egress. This is an important safety feature. In cases where the lock must be electrically unlocked on exit, the request-to-exit device also unlocks the doo
  • Access control topology
  • Access control decisions are made by comparing the credential to an access control list. This look-up can be done by a host or server, by an access control panel, or by a reader. The development of access control systems has seen a steady push of the look-up out from a central host to the edge of the system, or the reader. The predominant topology circa 2009 is hub and spoke with a control panel as the hub, and the readers as the spokes. The look-up and control functions are by the control panel. The spokes communicate through a serial connection; usually RS-485. Some manufactures are pushing the decision making to the edge by placing a controller at the door. The controllers are IP enabled, and connect to a host and database using standard networks
  • Access control readers may be classified by the functions they are able to perform
  • and forward it to a control panel.
  • Basic (non-intelligent) readers: simply read
  • Semi-intelligent readers: have all inputs and outputs necessary to control door hardware (lock, door contact, exit button), but do not make any access decisions. When a user presents a card or enters a PIN, the reader sends information to the main controller, and waits for its response. If the connection to the main controller is interrupted, such readers stop working, or function in a degraded mode. Usually semi-intelligent readers are connected to a control panel via an RS-485 bus.
  • Intelligent readers: have all inputs and outputs necessary to control door hardware; they also have memory and processing power necessary to make access decisions independently. Like semi-intelligent readers, they are connected to a control panel via an RS-485 bus. The control panel sends configuration updates, and retrieves events from the readers.
  • Systems with IP readers usually do not have traditional control panels, and readers communicate directly to a PC that acts as a host
  • a built in webservice to make it user friendly
  • Some readers may have additional features such as an LCD and function buttons for data collection purposes (i.e. clock-in/clock-out events for attendance reports), camera/speaker/microphone for intercom, and smart card read/write support
Tiberius Brastaviceanu

Welcome to the Mediterranean Sea - Welcome on Reef Check Mediterranean Sea! - 0 views

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    "This website is about the monitoring protocols for the Mediterranean Sea developed by the Reef Check organizations working in this geographic area since 2008"
Tiberius Brastaviceanu

Welcome to the new reputation economy (Wired UK) - 1 views

  • banks take into account your online reputation alongside traditional credit ratings to determine your loan
  • headhunters hire you based on the expertise you've demonstrated on online forums
  • reputation data becomes the window into how we behave, what motivates us, how our peers view us and ultimately whether we can or can't be trusted.
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  • But this wealth of data raises an important question -- who owns our reputation? Shouldn't our hard-earned online status be portable? If you're a SuperHost on Airbnb, shouldn't you be able to use that reputation to, say, get a loan, or start selling on Etsy?
  • The difference today is our ability to capture data from across an array of digital services. With every trade we make, comment we leave, person we "friend", spammer we flag or badge we earn, we leave a trail of how well we can or can't be trusted.
  • An aggregated online reputation having a real-world value holds enormous potential
  • peer-to-peer marketplaces, where a high degree of trust is required between strangers; and where a traditional approach based on disjointed information sources is currently inefficient, such as recruiting.
  • opportunity to reinvent the way people found jobs through online reputation
  • "It's not about your credit, but your credibility," King says.
  • At the heart of Movenbank is a concept call CRED.
  • "People are currently underusing their networks and reputation," King says. "I want to help people to understand and build their influence and reputation, and think of it as capital they can put to good use."
  • Social scientists have long been trying to quantify the value of reputation.
  • Using functional magnetic resonance imaging, the researchers monitored brain activity
  • "The implication of our study is that different types of reward are coded by the same currency system." In other words, our brains neurologically compute personal reputation to be as valuable as money.
  • Personal reputation has been a means of making socioeconomic decisions for thousands of years. The difference today is that network technologies are digitally enabling the trust we used to experience face-to-face -- meaning that interactions and exchanges are taking place between total strangers.
  • Trust and reputation become acutely important in peer-to-peer marketplaces such as WhipCar and Airbnb, where members are taking a risk renting out their cars or their homes.
  • When you are trading peer-to-peer, you can't count on traditional credit scores. A different measurement is needed. Reputation fills this gap because it's the ultimate output of how much a community trusts you.
  • Welcome to the reputation economy, where your online history becomes more powerful than your credit history.
  • Presently, reputation data doesn't transfer between verticals.
  • A wave of startups, including Connect.Me, TrustCloud, TrustRank, Legit and WhyTrusted, are trying to solve this problem by designing systems that correlate reputation data. By building a system based on "reputation API" -- a combination of a user's activity, ratings and reviews across sites -- Legit is working to build a service that gives users a score from zero to 100. In trying to create a universal metric for a person's trustworthiness, they are trying to "become the credit system of the sharing economy", says Jeremy Barton, the 27-year-old San Francisco-based cofounder of Legit.
  • trusted to pay on time
  • PeerIndex, Kred and Klout,
  • are measuring social influence, not reputation. "Influence measures your ability to drag someone into action,"
  • "Reputation is an indicator of whether a person is good or bad and, ultimately, are they trustworthy?"
  • Early influence and reputation aggregators will undoubtedly learn by trial and error -- but they will also face the significant challenge of pioneering the use of reputation data in a responsible way. And there's a challenge beyond that: reputation is largely contextual, so it's tricky to transport it to other situations.
  • Many of the ventures starting to make strides in the reputation economy are measuring different dimensions of reputation.
  • reputation is a measure of knowledge
  • a measure of trust
  • a measure of propensity to pay
  • measure of influence
  • Reputation capital is not about combining a selection of different measures into a single number -- people are too nuanced and complex to be distilled into single digits or binary ratings.
  • It's the culmination of many layers of reputation you build in different places that genuinely reflect who you are as a person and figuring out exactly how that carries value in a variety of contexts.
  • The most basic level is verification of your true identity
  • reliability and helpfulness
  • do what we say we are going to do
  • respect another person's property
  • His company, and other reputation ventures, face some big challenges if they are to become, effectively, the PayPal of trust. The most obvious is coming up with algorithms that can't be easily gamed or polluted by trolls. And then there's the critical hurdle of convincing online marketplaces not just to open up their reputation vaults, but create a standardised format for how they frame and collect reputation data. "We think companies will share reputation data for the same reasons banks give credit data to credit bureaux," says Rob Boyle, Legit cofounder and CTO. "It is beneficial for one company to give up their slice of reputation data if in return they get access to the bigger picture: aggregated data from other companies."
  • we will be able to perform a Google- or Facebook-like search and see a picture of a person's behaviour in many different contexts, over a length of time. Slivers of data that have until now lived in secluded isolation online will be available in one place. Answers on Quora, reviews on TripAdvisor, comments on Amazon, feedback on Airbnb, videos posted on YouTube, social groups joined, or presentations on SlideShare; as well as a history and real-time stream of who has trusted you, when, where and why. The whole package will come together in your personal reputation dashboard, painting a comprehensive, definitive picture of your intentions, capabilities and values.
  • idea of global reputation
  • By the end of the decade, a good online reputation could be the most valuable currency in your possession.
Francois Bergeron

Conference on smart sensors - nondestructive evaluation |SPIE Smart Structures/NDE - 0 views

  • Active and Passive Smart Structures and Integrated Systems
  • Industrial and Commercial Applications of Smart Structures Technologies
  • Smart Sensor Phenomena, Technology, Networks, and Systems Integration
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  • Nondestructive Characterization for Composite Materials, Aerospace Engineering, Civil Infrastructure, and Homeland Security
  • Health Monitoring of Structural and Biological Systems
Francois Bergeron

Nanotubes make 'exceptional' strain sensor - 0 views

  • Affixed to the chest as a respiration monitor, the team suggest it might help prevent sudden infant death syndrome (SIDS) but Hata's favourite application is the "data glove", which senses the movement of each finger. The group's glove sensed the motions of typing, but they say a version could be used to guide robots which perform surgery.  Hata also has more fun applications in mind, such as game controllers and virtual reality systems.
Tiberius Brastaviceanu

‎2012 June 12 fiber coating with feedback monitoring - Picasa Web Albums - 0 views

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    Tibi and Jonathan, first successful attempt of fiber coating with real time feedback.
Kurt Laitner

Using Nondominion to Evolve from Local to Global Commons - P2P Foundation - 0 views

  • 5 “As” (Architecture, Adaptiveness, Accountability, Allocation and Access) in the governance of the global commons for the benefit of humanity."
  • the new framework focuses on veto rights – rather than recognized ownership claims
  • mutual benefit.
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  • an association of beneficiaries.
  • A trustee (custodian) for the CHM would be elected by the representatives
  • to oversee the legal operation of a collective entity
  • The representatives would also appoint a Manager, for a parallel partnership venture, to identify opportunities to develop the common pool resource in accord with a transparent revenue-sharing formula
  • Each representative would have power to exercise a veto with regard to the resource development proposal(s) circulated by the manager.
  • Once an agreed formula (non-vetoed by the countries) emerged for recognizing needed inputs, and for overall revenue-sharing, the manager of the nondominium partnership would arrange open tenders to seek economic partners to maximize the value of the common pool resources.
  • Revenues from ensuing activities would be distributed to the association members on the originally-agreed basis
  • Oversight of compliance would rest with the nondominium’s trustee
  • Ostrom’s key principles of successful collective choice agreements and monitoring by independent auditors.
  • Moreover, it does not confer the active power of control held under common law by a Trustee on behalf of beneficiaries,
  • the proposed negative or passive veto right of stewardship differs fundamentally from conventional property rights of absolute ownership and temporary use under Condominium
  • The Caspian Partnership agreement would comprise a master framework agreement within which a myriad of associative agreements between the Caspian littoral nations individually or severally would be registered.”
  • encourage Ostrom’s user association-based systems of economic governance
  • "Areas recognized as being the heritage of mankind are defined by treaties as falling outside of nation-state jurisdiction and ownership, and are to be instead developed on a basis that benefits all human beings
  • the combination of Elinor Ostrom’s economic governance strategies with nondominium legal structures can lead to a new basis for common pool resources to be developed on a basis benefiting all of humanity.
Kurt Laitner

AIRO - 0 views

Tiberius Brastaviceanu

INFRASUPP-7-2014 - 0 views

  • Topic: e-Infrastructure policy development and international cooperation
  • coordinate European, national and/or regional policies and programmes for e-infrastructures
  • global interoperability and reach
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  • Scope: Proposals will support one or more of the following actions:
  • Dissemination of information on the e-infrastructure programme
  • coordination
  • Stakeholder initiatives
  • Policy coordination at European or regional level
  • metrics and indicators
  • Monitor and analyse
  • Support to technology transfer
  • Support to cooperation with developing countries
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    "Topic: e-Infrastructure policy development and international cooperation"
Kurt Laitner

What do we need corporations for and how does Valve's management structure fit into tod... - 0 views

  • Valve’s management model; one in which there are no bosses, no delegation, no commands, no attempt by anyone to tell someone what to do
  • Every social order, including that of ants and bees, must allocate its scarce resources between different productive activities and processes, as well as establish patterns of distribution among individuals and groups of output collectively produced.
  • the allocation of resources, as well as the distribution of the produce, is based on a decentralised mechanism functioning by means of price signals:
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  • Interestingly, however, there is one last bastion of economic activity that proved remarkably resistant to the triumph of the market: firms, companies and, later, corporations. Think about it: market-societies, or capitalism, are synonymous with firms, companies, corporations. And yet, quite paradoxically, firms can be thought of as market-free zones. Within their realm, firms (like societies) allocate scarce resources (between different productive activities and processes). Nevertheless they do so by means of some non-price, more often than not hierarchical, mechanism!
  • they are the last remaining vestiges of pre-capitalist organisation within… capitalism
  • Hayek’s argument was predicated upon the premise that knowledge is always ‘local’ and all attempts to aggregate it are bound to fail. The world, in his eyes, is too complex for its essence to be distilled in some central node; e.g. the state.
  • The idea of spontaneous order comes from the Scottish Enlightenment, and in particular David Hume who, famously, argued against Thomas Hobbes’ assumption that, without some Leviathan ruling over us (keeping us “all in awe”), we would end up in a hideous State of Nature in which life would be “nasty, brutish and short”
  • Hume’s counter-argument was that, in the absence of a system of centralised command, conventions emerge that minimise conflict and organise social activities (including production) in a manner that is most conducive to the Good Life
  • The miracle of the market, according to Hayek, was that it managed to signal to each what activity is best for herself and for society as a whole without first aggregating all the disparate and local pieces of knowledge that lived in the minds and subconscious of each consumer, each designer, each producer. How does this signalling happen? Hayek’s answer (borrowed from Smith) was devastatingly simple: through the movement of prices
  • The idea here is that, through this ever-evolving process, people’s capacities, talents and ideas are given the best chance possible to develop and produce synergies that promote the Common Good. It is as if an invisible hand guides Valve’s individual members to decisions that both unleash each person’s potential and serve the company’s collective interest (which does not necessarily coincide with profit maximisation).
  • Hume thought that humans are prone to all sorts of incommensurable passions (e.g. the passion for a video game, the passion for chocolate, the passion for social justice) the pursuit of which leads to many different types of conventions that, eventually, make up our jointly produced spontaneous order
  • In contrast, Smith and Hayek concentrate their analysis on a single passion: the passion for profit-making
  • Hume also believed in a variety of signals, as opposed to Hayek’s exclusive reliance on price signalling
  • One which, instead of price signals, is based on the signals Valve employees emit to one another by selecting how to allocate their labour time, a decision that is bound up with where to wheel their tables to (i.e. whom to work with and on what)
  • He pointed out simply and convincingly that the cost of subcontracting a good or service, through some market, may be much larger than the cost of producing that good or service internally. He attributed this difference to transactions costs and explained that they were due to the costs of bargaining (with contractors), of enforcing incomplete contracts (whose incompleteness is due to the fact that some activities and qualities cannot be fully described in a written contract), of imperfect monitoring and asymmetrically distributed information, of keeping trade secrets… secret, etc. In short, contractual obligations can never be perfectly stipulated or enforced, especially when information is scarce and unequally distributed, and this gives rise to transaction costs which can become debilitating unless joint production takes place within the hierarchically structured firm. Optimal corporation size corresponds, in Coase’s scheme of things, to a ‘point’ where the net marginal cost of contracting out a service or good (including transaction costs) tends to zero 
  • As Coase et al explained in the previous section, the whole point about a corporation is that its internal organisation cannot turn on price signals (for if it could, it would not exist as a corporation but would, instead, contract out all the goods and services internally produced)
  • Each employee chooses (a) her partners (or team with which she wants to work) and (b) how much time she wants to devote to various competing projects. In making this decision, each Valve employee takes into account not only the attractiveness of projects and teams competing for their time but, also, the decisions of others.
  • Valve differs in that it insists that its employees allocate 100% of their time on projects of their choosing
  • Valve is, at least in one way, more radical than a traditional co-operative firm. Co-ops are companies whose ownership is shared equally among its members. Nonetheless, co-ops are usually hierarchical organisations. Democratic perhaps, but hierarchical nonetheless. Managers may be selected through some democratic or consultative process involving members but, once selected, they delegate and command their ‘underlings’ in a manner not at all dissimilar to a standard corporation. At Valve, by contrast, each person manages herself while teams operate on the basis of voluntarism, with collective activities regulated and coordinated spontaneously via the operations of the time allocation-based spontaneous order mechanism described above.
  • In contrast, co-ops and Valve feature peer-based systems for determining the distribution of a firm’s surplus among employees.
  • There is one important aspect of Valve that I did not focus on: the link between its horizontal management structure and its ‘vertical’ ownership structure. Valve is a private company owned mostly by few individuals. In that sense, it is an enlightened oligarchy: an oligarchy in that it is owned by a few and enlightened in that those few are not using their property rights to boss people around. The question arises: what happens to the alternative spontaneous order within Valve if some or all of the owners decide to sell up?
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