Structure

Altruistic Economics

AE106: Key Innovations of AE

V1.0

A presentation given to Grameen Software by Dr. Robin Upton.Grameen Bank Bhaban, Mirpur 2, Dhaka 1216, Bangladesh 2005-0?-??

Available for download at www.altruists.org/ae106

Attribution – NonCommercial - ShareAlike

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Recommended Pre-requisite: AE105: Blueprint for A People-Centred Economy

Innovation 1: Sympathy & The Network Of Care

Innovation 2: Multiple-Value PricingImplementation: Overview

Structure

Telephone Dilemma

This presentation motivates two of the key innovations of Altruistic Economics from first principles, without reference to Classical Economics.

“Everything should be made as simple as possible, but not simpler.”

Albert Einstein

Telephone Dilemma

International Telephone Dilemma

Someone rings your mobile (Aktel)

on a Grameen phone & asks if you can call back.

Which do you choose?

HE PAYS:

YOU PAY:

Grameen Aktel = 7/minute

Aktel Grameen = 3/minute

1a. Sympathy

Quantifying Sympathy

You would give up your own profit . to save a friend’s loss.

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FriendYou sympathy

You have sympathy iff…

Quantifying Sympathy

Friend of a Friend ?

0 13/7

Call BackDon’t Call

Sympathy:

Indifference value of s = 3 / 7

A stranger wants you to call them back…

They claim to be a ‘good’ friend of your friend.

Friend of a Friend?

Do you Call?

2. Network of Care

Friend FriendYou s ?

1b. Network of Care

Sympathy helps us appreciate the relationships of others

Not a Market!

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Not a Market!

Numeric Self-Expression

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… different contacts

… sympathy for trading partners

Closer to how people really do business than the market model.

… different sympathies

Everyone has

Numeric Self-Expression

. Two Dimensions of Feeling

…of self-expression in numbers.

Unhappier Happier

- +0

Money can be seen as training…

Two Dimensions of Feeling

. Creating, not Transferring Value

Suppose and work on a

project together:

Good for Both

Good for neither

Good for Blue

Good for Orange

0

+

-

-

+

Healthy Society

. Creating, not Transferring Value

Good for Both

Bad for Both

+

+

-

-

-

Lose-Lose Quadrant

A sick society has a lot of litigation, predatory

lending, rent-seeking etc.

Win-Win Quadrant

A healthy society has a lot activity here

Competitive Scoring

. Instinctive Competition

0

1

2

3

-1-2

-3

Left

Right

+

+

-

-

The blue lines show Win-Win and Lose-Lose

can get the same scores.

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Traditional Money = Value Transfer

Instinctive Competition

haggling can become deeply ingrained, even instinctive.

If we deal with strangers regularly…

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. Competitive Mentality

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. Cooperative Mentality

Science, Culture, Law, even Love …

From Tom and Jerry onwards, the competitive metaphor overshadows all areas of our lives.

Competitive Mentality

Cooperative Mentality

How to get away from win-lose

thinking ?

Cooperative mentality exists, but is frustrated by current economic forms.

. Cooperative Scoring

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Cooperative Scoring

A Fundamental Problem

Win-Win and Lose-Lose always get opposite

scores…

Left

Right

+

+

-

-

Created Value

Destroyed Value

0

-1

-2

-3

12

3

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… but interpersonal transfers aren’t

relevant at all…

Non-Traditional Money = Value Creation

A Fundamental Problem

So…

3 3. Multiple-Value Scoring

A single number can never reflect the value to both parties!

2. Multiple-Value Scoring

…we use a 2-dimensional

system!

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(X,Y)

X

Y

Implementation Overview

Independent evaluation

resolves the conflict

Implementation Overview

1. Gift Economy Interface

2. Altruistic Economics Data

3. Friend-2-Friend

4. Hardware

1. Gift Economy Interface

DONE

TO DO

TO DO

DO Some

1. Gift Economy Interface

= Web-based templates allow easy creation of Pages

2. Altruistic Economics Data

Aim: Bootstrapping development & fast adoption by WWW community

e.g: A Search Engine to match up people...

Offers Requests

Robin Upton, +160h –45h, Rate= -0.2Computer Hardware, Statistics, Foreign Languages, Bangladesh Contacts …

Kevin Towell, +14h –3h, Rate= -0.2Computer Hardware, Motorbike repair, Shop Management, Psychology …

Angela Robinson, +550h –175h, Rate= +2 Can you help me with my Laptop? The E-mail is giving me a lot…

Graham Upton, +3h –2h, Rate= +1.6I just can’t get my Wireless LAN working properly. It keeps cutting out, just …

Computer/Hardware/Repair

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2. Altruistic Economics Data

N.B. Equity does not need to be ‘enforced.’ (This is up to the system’s users)

3. Friend2Friend

= Standards for

Sympathy .

Evaluations

A B C

D

SBC

SCB

SBD

SAB

SBA

as a basis for interoperate software

-2h

+8h

3. Friend2Friend

= lightweight platform for secure connection & data exchange between selected peers

4. Hardware Layer

Specification of a simple standard will mean it can be implemented in any platforms desired.

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4. Hardware Layer

= network of devices that support IP-Traffic

Wired 802.11 GPRS 3G 802.16 802.20

Many generations of wireless internet technology are emerging…

Appendix: Designing An Internet . Gift Economy

Gift Economy

To survive, it must resist attack from ‘leechers’ !!!

Multi-Step Transactions

Command Economy

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Multi-Step Transactions

Gift Economy

Command Economy

Has This Person given to the Gift Economy?

Only Give to People who are in Credit with You!