The Wealth of Networks and Non-markets
I've just started reading Yochai Benkler's book, The Wealth of Networks: How Social Production Transforms Markets and Freedom online, although I will probably pick up a printed copy at some stage.
It's fascinating so far but I was immediately confused by Benkler's frequent use of the term "non-market" which, in context, seems to suggest he has a much narrower sense of what the "market" is than I've come across before.
For example, consider the following quote (from the first chapter summary on the book's wiki):
Freedom and justice is best achieved through a combination of market action and private, voluntary (thought not necessarily charitable) nonmarket action. The state in this theory is a relatively suspect actor.
I'm not sure what he means by "market" if private, voluntary action is "nonmarket".
Comments (3)
James Tauber on April 19, 2006:
It's just not a distinction I'm used to. In particular, I associate terms like "individual" and "cooperative" *with* the market, not in contrast to it.
Benkler seems to be calling things like Creative Commons "nonmarket" but former executive director Glen Otis Brown himself has called it a "voluntary, market-based approach to copyright".
Chris Lawer on July 11, 2006:
(1) Harley Davidson (HD) execs with Bikers - where HD is engaging the biker to find out what they want / what isnt working to sell them more HD gear / products / better experiences. This is a market-based form of innovation where there is a value on the exchange of ideas, which HD is willing to invest in
Biker to Biker - where bikers are selling bits of kits or swapping gear based on a notional value of ownership. This is a market.
Biker to Biker - exchanging tips, ideas, experiences, providing best advice to each other, arranging other events and discovering ways to adjust HD's bikes to get better performance or add parts.. This is a non-market form of co-creation. There is high reciprocity and a social interaction for no motive other than to feel part of an active community.
The common theme is that they are all engaged in some form of learning, but some of these interactions are underpinned by a market or profit motive, others by a participation motive and a sense of belonging.
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Last Modified: April 16, 2006
Author: jtauber
Geof on April 19, 2006:
In liberal discourse, the distinction is often between state action (public) and individual or market action (private). However, there are other ways of using these terms. Public may mean collective or social, thereby encompassing the market, while private may mean individual or within the family (feminism typically makes this distinction). He seems to be making a similar distinction just before the passage you quote, where he contrasts "individual and cooperative private action" with "market-based and proprietary action". I see a distinction here between individual actors and corporate ones (businesses and others).
As to voluntary, while the individual decisions of actors in a market may be intentional and voluntary, it makes less sense to describe the behavior of the market as a whole - the "invisible hand" - in these terms.