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The strange economics of open-source software

philipotoole.com

51–60 of 91 posts

Re: The strange economics of open-source software

#51

I know that this will annoy some people, and believe me, I mean this with a very small 'c', however I think that the open source movement is far and away the most successful communist experiment in history.

It doesn't annoy me, but I have to say that I think you are wrong ;-). My google-fu gave me the following definition for communism:

"a theory or system of social organization in which all property is owned by the community and each person contributes and receives according to their ability and needs."

I suppose there is some superficial resemblance, but I consider communism a means of doling out limited resources in an equitable fashion. So instead of having individual ownership, the community owns it and manages it based on need. Instead of being free to act in your own best interest, you are obliged to contribute to the level of your ability.

With FLOSS, we are simply removing the concept that a piece of software is a limited resource. There is no group ownership -- individuals still own their copyright. It's just that under the rules of the licensing, ownership is irrelevant.

For example, I no longer sign inventions agreements at work. Instead, I tell my employers that all outside work I do will be under the GPL (or AGPL). I will even assign copyright over to them as long as the code is licensed as GPL. They can own it. I don't care because it makes no difference who owns it.

In a communist society, ownership is still quite important. It dictates who will decide what I need. If I owned the resource, I could take as much as I wanted (or give away or sell it if I wanted). With community ownership, the community decides. With FLOSS, if I have a copy of the software, it just doesn't matter who owns the copyright. I have the same rights and obligations either way.

Another big difference is the reception of the item. In a communist society, I have a right to the things I need and an obligation to contribute to my ability. With FLOSS, nobody must give me anything. If they do happen to give something to me, then I can do what I want with it (up to the limit of impinging other people's freedoms in some cases). But I don't have to do anything.

This is often a big misunderstanding the neophytes to free software have. They often demand bug fixes, or they demand to be given software for free. You just don't have that right, even if it is something you need. Similarly, if I make a change to any software, I needn't give that change to anyone. I am free to do so, but I have no obligation.

In summation, I don't think this is communism at all. It is simply leveraging the fact that existing software is not a limited resource. It establishes a set of community rules that optimises the freedom of the members of the community, not the satisfaction of their needs. Importantly, it does not establish any rights or obligations.

The last bit is tricky as you have obligations to offer source code if you choose to distribute, but the "if" part is important. Similarly, advocates feel that there is a moral imperative to act in a way that preserves software freedom for downstream users, but nobody says that those users have a "right" to the software (in the way that a person has a right to a food in communist society).

Re: The strange economics of open-source software

#52

I know that this will annoy some people, and believe me, I mean this with a very small 'c', however I think that the open source movement is far and away the most successful communist experiment in history.

Well that isn't exactly a surprise for anyone who has read the "GNU Manifesto" (or even just seen it's title) - and yes, of course, the FSF is not the whole open source movement, etc, etc.

Re: The strange economics of open-source software

#53
post #22

Earlier quoted context omitted.

Utility is a well-known concept in economics. It's strange at first to the outsider, but it's easy to understand with a little reading.

I know what utility is in economics, my problem is that you can always just say that the reason why people do X is because they are rational and X maximizes their utility. It doesn't tell you why that is their preference and why X satisfies their preference. It is not like the action or hamiltonian in physics which come with equations of motions that can be checked against experiment. Why is open source good for ever…

I don't think you understand utility properly, and sounds like you have a hard sciences bent.

The point of utility is that everyone is different. They will all behave in chaotic and unpredictable ways. The only way to make sense of why people exchange is to make the assumption that each participant in the exchange gains something greater than what they give up. Since the thing they gain and the thing they give up are always going to be different, it has to be distilled down to something. That's utility.

You say that I haven't solved 'the problem'. I say there is no problem to be solved. All we can do is observe the actions underway because there is nothing to fix.

We can't say why the contributors utility is increased, because by very definition, each persons utility is different. You can only infer or measure the subset of those, and make observations. Utility is the abstract class of individual preference implementations. There is no more point in trying to determine the cause of each individuals utility than there is trying to work out the purpose of each class implementation form the point of view of the abstract class. What does it matter? It doesn't.

Open source software doesn't suffer the tragedy of the commons precisely because the utility contributors gain can only be upwardly increased by people using it, and overconsumption of the software has very little effect on the utility of the producers. In the original case of the commons, overconsumption of grazing lands decreases the utility of each individual grazer, but if anything the opposite effect happens in OSS. Assuming one can brush off idiotic bug reports and I'll-advised pull requests, that is. But because contribution is not binding when the cost of contribution exceeds the utility gained, the person switches their time preferences to differnt things.

Incidentally, the evils of central planning are precisely because people try and 'solve' the problem of marketplaces, when there is no problem to solve, only exchanges to observe.

Re: The strange economics of open-source software

#54
post #35

> I always use the names of economists for my machines’ hostnames. keynes, friedman, marx, fisher, ricardo. Where is Mises and Hayek ?

In the garbage bin.

Keynes should rather be there, with his stupid Stimulus theory that has been proven to be detrimental over and over again, on every single occasion.

Re: The strange economics of open-source software

#55
post #22

Earlier quoted context omitted.

Utility is a well-known concept in economics. It's strange at first to the outsider, but it's easy to understand with a little reading.

>Utility is a well-known concept in economics. It's well known but it still has a circular definition. Why do people spend $X on goods? Because it provides $X worth of utility. Why does it provide $X worth of utility? Because they spent $X on it. Ultimately it therefore ends up being rather meaningless. It's also non-disprovable which makes it non-scientific.

It's not meant to be scientific. It's a tool for abstracting a situation down to understand the intent rather than the details.

Your first mistake here is to try and assign a '$X worth of utility' - utility is not a unit which can be expressed in another unit. Someone can spend $x on something which gives them utility, but equally they can go for a hike in the mountains which provides greater utility to that individual than the object bought for $x, yet the hike costs has no $ value and cannot be bought nor sold.

So the circular argument criticism is only circular because you're forcing it to be circular.

Re: The strange economics of open-source software

#56

There is one thing about open source that needs to be known. It is not self sustainable. It requires external factors for support. Allow me to elucidate. The software engineer occupation is a highly specialized role. A software engineer alone does not have the ability to survive, hunt food, or build shelter. Instead the software engineer must trade his skill for the services of other experts. In short, a software eng…

Only exists because of scarcity: http://journal.dedasys.com/2007/02/03/in-thrall-to-scarcity/

Re: The strange economics of open-source software

#57

Earlier quoted context omitted.

That's the exact problem I'm talking about. Yet, there's so much great stuff that they make! Stuff I'd love to be using right now in something else I have. Gotta figure out how to solve this problem. It's why I keep thinking of creating a new resource that's an alternative to IEEE/ACM w/out their expensive paywall, links to Wiki's on the subject, and good search functionality. Get enough in there on key topics and on…

I didn't mean to imply that the problem was an expensive paywall. Using graphics as an example again, imagine a research paper explaining a new rendering algorithm that can render in half the time of the next best algorithm. As great as it may be, it's not very useful without the rest of the software infrastructure that comes along with a production rendering system, like Renderman, 3Delight, or Maya. So even if the…

I implied that. Most programmers today use Google. A paywall prevents them from getting these answers. So, most are blocked out.

Far as your example, I agree that algorithm support can't help without good software going along with it. That's probably true for many use cases with examples you cited being areas where proprietary tools and ecosystem dominate. Leads to some potential counters:

1. It might help in the many things that OSS is doing. That's a huge list that includes desktops, phones, servers, and a few major apps.

2. It might help in commercial sector if their developers see the cutting edge approaches. It might be obvious where rendering advances are but most stuff is scattered: finding it took lots of searching with my keyword, kung-fu. Might be affecting discovery in proprietary side, too. I know many of them keep inventing solutions weaker than even well-cited academic stuff. Aside from patents, gotta wonder why they didn't go with better approach if it seemed like a good fit. Likely explanation: didn't know it existed.

For instance, it's commonly believed that signal processing can only use a commercial DSP or graphics card with nothing delivered aside from that. People wanting an open alternative don't even know where to start that's worth anything. I heard and believed that too till I landed on this bad boy:

https://www.wikiwand.com/en/Asynchronous_array_of_simple_pro...

The architecture is described in enough detail to be clonable. It might even be licensable with open-source allowed. It should handle plenty of workloads and supports custom accelerators for common things. After the mask costs, it would have great price vs performance vs energy usage. Yet, with 8 years of research, I just now came across this despite the first deliverable being in 2005. Might be a dead end and might turn into something if pursued. Yet, I'm sure it had potential to benefit commercial and OSS projects whose design approach accomplished far less had they known about this.

So, more full and legacy systems certainly have lots of momentum. You can't just have a piece of a system. I think even they might be affected by the problem I describe, though, given they're as sub-optimal vs cutting edge as OSS often are. So, easier movement of these ideas might benefit both.

Re: The strange economics of open-source software

#58
post #22

Earlier quoted context omitted.

Utility is a well-known concept in economics. It's strange at first to the outsider, but it's easy to understand with a little reading.

>Utility is a well-known concept in economics. It's well known but it still has a circular definition. Why do people spend $X on goods? Because it provides $X worth of utility. Why does it provide $X worth of utility? Because they spent $X on it. Ultimately it therefore ends up being rather meaningless. It's also non-disprovable which makes it non-scientific.

Utility is a unit of accounting that works much better than money. It's actually called a "utility function" because the utility varies depending on the inputs, including time, number of units, etc.

For example, let's say you've always wanted to go skydiving. You pay $500 and go skydiving. It's a great value to you. But when you get back to the ground, would you pay $500 to do it again? Probably not, since the utility of going skydiving has dropped for you (because you crossed it off your bucket list), even though the price has stayed the same.

Now imagine the price for skydiving has dropped to $25. You might go again. Heck, you might go every day for a week. But after a while, the novelty wears off, and you won't go anymore. Even if the price drops to free.

In fact, if someone was forcing you to go skydiving every day, you might even PAY to do something else instead.

On the other hand, maybe you need to skydive every day because you are trying to qualify as a stuntman. That means the utility of being qualified is greater than the negative utility of "boredom from too much skydiving".

Or maybe you NEVER go skydiving because you went base jumping several years prior, and skydiving seems similar enough that it's just not worth $500 to you.

Trying to representing these trade-offs with only money is confusing and/or impossible. Try to work out the "boredom" example using only money: Someone can know they get more utility from X than Y, but not be able to express prices for X and Y.

Re: The strange economics of open-source software

#59

There is one thing about open source that needs to be known. It is not self sustainable. It requires external factors for support. Allow me to elucidate. The software engineer occupation is a highly specialized role. A software engineer alone does not have the ability to survive, hunt food, or build shelter. Instead the software engineer must trade his skill for the services of other experts. In short, a software eng…

I think the trend is that closed source software is increasingly becoming the highly customized last-mile code that runs a specific business which sells services, curated information, or physical products.

I also think this is why jobs involving OSS development are increasingly attractive to candidates. Do you want to spend your time building what amounts to a one-off solution to duck tape some wonky IT-department components, or do you want to work on well-engineered projects that are generalized solutions?

So I think closed source software is basically the last layer that integrates open source software. Which ever side you view as bringing in the sales and money is really just a matter of perspective.

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