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Transcript of Altruistic Economics A presentation by Dr. Robin Upton. BRAC University, 2005-03-07 18:00 Available...
![Page 1: Altruistic Economics A presentation by Dr. Robin Upton. BRAC University, 2005-03-07 18:00 Available for download at Attribution.](https://reader030.fdocuments.net/reader030/viewer/2022032606/56649eb55503460f94bbea51/html5/thumbnails/1.jpg)
Altruistic Economics
A presentation by Dr. Robin Upton. BRAC University, 2005-03-07 18:00
Available for download at www.altruists.org/ae5
Attribution – NonCommercial - ShareAlike
Talk Structure
www.altruists.org
A Relationship-BasedTrading Model
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Failure . Failure of Classical Assumptions
Talk Structure
1. Assumptions of the Market Economy
2. An Alternative Assumption
3. Model Modification
4. Model Developments
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. i. ‘Perfect’ Information
Firstly…
i. ‘Perfect’ Information
iii. Relationships in the ‘Perfect’ Market
Then we consider the nature of
1. Assumptions of the Market Economy
ii. Impartial Support Systems
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Nowadays…
i. ‘Perfect’ InformationOnce upon a time, a long, long time ago, shops were small.
How much it cost
What the quality was like
In the market, everyone knew…
Everything that was on sale
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Nowadays
Nowadays …
Times have changed
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Equal Access To Credit?
ii. Impartial Support Systems
Law
Finance
A healthy economy requires fair access to other systems, such as:
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. Equal Charges for Credit?
Equal Access to Credit?
“More than ½ the population of the world… do not qualify to take out a loan from a bank…
Muhammad Yunus
…My vision for the future?… to make credit a human right.”
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Equal Charges for Credit?
Credit is … Interest…
Expensive for the poor.
moves money from poor to rich.
German Household Groups According to Income
Money Movement due to Interest - 1980Money Movement due to Interest - 2000
Payment Income
Source: 1980 – A Changing Money System (M. Kennedy)
2000 – Bundesbank figures (H. Creutz) .
Legal Example
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• We do what we want• We are not liable, whatever• Click to proceed…
Legal Summary
Legal Example
Agree
Consider the typical software EULA…
TERMS AND CONDITIONS
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. iii. The ‘Perfect’ Market
Legal Summary
lawyers cost a lot of money !Anyway…
money = legal power So…
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. Relationships in the Market
iii. The ‘Perfect’ Market
Modern Economics owes more to mathematics than psychology. The market as modelled is…
not about PEOPLE;
all about PRICES.
www.paecon.net
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. Personal Relationships
Relationships in The Market
‘Perfect’ market relationships are …
self-interested not altruistic
short-term not long-term
money-centred not people-centred
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. 1. Market Economy - Summary
Personal Relationships
‘Perfect’ personal relationships are …
altruistic not self-interested
long-term not short-term
people-centred not money-centred
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t. 2. An Alternative Assumption
Some assumptions are outdated
1. Market Economy - Summary
Disharmony between Market & Personal values
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2. An Alternative Assumption
. Modelling Relationships
Classical Economics Altruistic Economics
THEORETICAL ASSUMPTIONS
PRACTICAL EFFECT
Disharmony between
Market & Personal Relationships
People Care About One
Other
?
Perfect Information
Impartial Support Systems
Selfish Individuals
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Modelling Relationships
. Differentiating Relationships
1. Relationships exist between particular individuals …
Relationship
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Differentiating Relationships
Sympathy, s
2. Express different types of relationships…
…by adding a numerical element.
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Sympathy, S
“Emotional Proximity” ~ s > 0 for Friendships
No Love At All
Network of Care
Love Like Self
0 1
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Network Of Care
. Trading A to B
www.altruists.org/355
A B C
D
SBC
SCB
SBD
SAB
SBA0.25
0.4
Aysha Cares for Birbal Birbal Cares for everyone else
Christopher Cares for Birbal Dipti Cares for no one
Aysha has a Sympathy of 0.4 for Birbal, so
SAB=0.4
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Trading A to B
. Birbal Needs Help!
A B C
D
SBC
SCB
SBD
SAB
SBA0.25
www.altruists.org/355
0.4
Aysha Cares for Birbal Birbal Cares for everyone else
Christopher Cares for Birbal Dipti Cares for no one
Consider a trade between A & B …
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Birbal Wants Help!
Birbal has a computer problem,
so he publishes this fact:
Aysha Can Help
User Type of Work Requested Rate
B Computer Repair
He estimates: 1 hour of competent help would save him 6 hours of his own effort.
6
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Aysha Can Help!
Aysha is a computer engineer:
. Selfish Transaction Evaluation
User Type of Work Offered Rate
A Computer Repair
She estimates: 1 hour she spends = 1 hour of competent help
-1
A B
0.25
0.4
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IndividualisticEvaluation
A B
-1 6
Individualistic Transaction Evaluation
. NON-Zero Sum System
Score using 2 self-evaluated time costs.
User Work Offered Rate
A Computer Repair -1
User Work Requested Rate
B Computer Repair 6
Individuals’ Scoring is Independent
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NON-Zero Sum System
Zero-Sum System
(-1,+6)
Good for Both
Bad for BothGood for A,
Bad for B
A
B
+
+
-
-
Good for B,
Bad for A
Independent scoring is NON-Zero Sum
A+B=0
www.altruists.org/392
0,0
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Zero Sum System
Money is Zero-sum => (p,-p)
. Price = Systemic Conflict
* ‘Making money’ is a euphemism; only forgers and central banks actually make it …
A+B=0
Good for Both
Bad for BothGood for A, Bad for B
A
B
+
+
-
-
Good for B, Bad for A
(-p,p)
No one here ever makes* money…
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Price = Systemic Conflict
. Individualistic Transaction Evaluation
Real Value (hidden)
Real Cost (hidden)
Price P,
Splits the benefit A & B.
www.ledgerism.net/theInfoGap.htm
www.altruists.org/384
A+B=0 B+
-
-
(-1,+6)
A +
6
-1
(-p,p)
Good for B, Bad for A
Benefit for A = P - 1
Benefit for B = 6 - P
A & B have directly opposite
interests!
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IndividualisticEvaluation
A B
-1 +6
Individualistic Transaction Evaluation
. Altruistic Transaction Evaluation
Use of 2 self-evaluated time costs…
Removes systemic competition!
Use the Network of Care to modify this evaluation.
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AltruisticEvaluation
A B
Altruistic Transaction Evaluation
. Indirect Sympathy
Now apply the sympathy values…IndividualisticEvaluation
A B
-1 +6.25
.41
1
A B
0.4
0.25
+6-1
+0.4x+6
+.25x-1
AltruisticEvaluation
A B
1.4 5.75
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Indirect Sympathy
. 2. Alternative Assumption - Summary
Sympathy is not only for one’s own friends …
A B
0.4
SBA
C
0.3
SCB
SAC = SAB x SAC = 0.4 x 0.3 = 0.12
A has indirect sympthy for C:
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2. Alternative Assumption - Summary
. 3. Model Refinement
Publish sympathy for friends.
IndividualisticEvaluation
A B
-1 +6
AltruisticEvaluatio
n
A B
1.4 5.75
Before trading:
Evaluate trade:
Publish offers/requests.
ASAB B
Use sympathy values to revise
Record trade: Publish post hoc feelings.
User Work Offered RateA Computer Repair -1
User Work Requested RateB Computer Repair 6
->
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3. Model RefinementLimited Sympathy
• If you would spend 10 to save someone 50, does that mean you would also spend 1,000 to
save them 5,000?
. Non-Linear Sympathy
• There are limits to what we do for others. Sympathy limits reflect that.
• Could you spend 1Crore to save them 5Crore?
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Non-Linear Sympathy
. Modelling Sympathy
• Sympathy is not constant
• Gradient increases with Time Given
Gradient = 3
Gradient = 20
• People run out of sympathy & get gradually less sympathetic
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Modelling Sympathy
Multiplier = 1/s
Approximate the curve with straight lines:
Express the sympathy as
Length 5h, gradient 2, so write it (5h 2)
Length 5h, gradient 10, so write it (5h 10)
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Multiplier = 1/s
. Sympathy Vectors
A is willing to spend up to 5 hours to save 10 hours for B
Hence, sympathy =5h/10h= 0.5
We will be looking at 1/s, which we
call the multiplier = 2 in this case
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Sympathy Vectors
. A & B Computer Example
Lengths of Time
Multipliers
5h 2
5h 10
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A & B Computer Example
. Sympathy as Credit
Suppose A cares for B as follows:
B gains six hours for every hour of input from A, so the transaction has a multiplier of 6.
However, she will not work any more for B, since 6<10, so that a multiplier of 6 is insufficient.
A will put in 5 hours of work for B (because 6>2)…
User Work Offered Rate
A Computer Repair -1
User Work Requested Rate
B Computer Repair 6
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Sympathy as Credit
. Calculation of Indirect Sympathy
• Increasing multipliers ~ reluctance to work altruistically as input is used up
2h 11h 22h 31h 41h 71h 101h 131h 15
• Curves can be modelled as closely as is required
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Calculation Of Indirect Sympathy
.Conflation - SABC
4 A
A’s evaluationB’s evaluation
12 B = 24 C.
Cheapest Rate (3):
Cheapest Rate (2):
Cheapest Rate (3):
Next Rate (6):
Next Rate (4): +24B = 96 C6 A = 18 B
1 A = +6 B
= 12 B
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Conflation - SABC
. Combination of Multiple Paths
A evaluates B evaluates Overall4 A = 12 B 12 B = 24 C 4A=24C6 A = 18 B 18 B = 72 C 6A=72C1 A = 6 B . 6 B = 24 C 1A=24C
4h 6
6h 12
1h 24
SABC =
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Combination of Multiple PathsIf A also cares for D, who cares for C…
We know
SABC =
4h 6
6h 12
1h 24
Calculate
SADC =
15h 2
2h 5
3h 10
2½h 20
. Intelligent Path Choice
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Intelligent Path Choice
3. Modified Model - Summary
A has 2 sympathy paths to C, A B C & A D C:
Simply order the different time values by multiplier:
The combination, SAC =15h 2
B
D
B
DDDD
BB
• SAC ‘contains the intelligence’ of
alternate paths of sympathy
2h 54h 63h 106h 122½h 201h 24
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3. Modified Model - Summary
. 4. Model Developments
Conflation: A B C A C
Combination: A C A C
So, sympathy can be calculated between any 2 nodes on a
Network of Care…
Sympathy expresses care for particular others.
Each relationship has a sympathy vector.
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4. Model Developments
• Recording Work Done
• Range Of Applications
• Multiple Currencies
• Delegated Voting
•Relationship Credit
. Recording Work Done
Many Open Areas of Research …
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Recording Work Done
. Swinging of Relationship Credit
• Scoring would encourage people to give more.
• Fairness is satisfied if, for any pair of nodes, resource flow from A B is about equal to the flow from B A
AB
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Swinging of Relationship Credit
. Range Of Applications
• Work Balance can be pushed out in either direction…
A B
40h 120h 220h 420h 108h 20
SAB=
• Effect of variable multipliers is to restore the equilibrium
40h 20h20h
20h
8h
40h40h 120h 220h 420h 108h 20
SBA=
40h 1 40h 120h 220h 420h 108h 20
20h 240h 1
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Range Of Applications
. Multiple Currencies
Altruistic Economics could apply at many levels.
Each node could represent, for example…
A person
A family
An idea
• A project
• An NGO
• A country
Different levels could coexist, adding greatly to the power & flexibility of the system.
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Multiple Currencies
. Voting As Currency
• Users offer whatever currencies they like
• Users publish personal rates of conversion between different currencies to allow efficient flow between them.
• Survival of the fittest will decide which are used
Patients Treated
Meetings Held /Day
Staff /PersonDays
Volunteer Assistance /PersonDays
Taka
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. Ranking By Relationship Credit
Suppose…
1. Everyone receives one unit of a new resource;
2. It can be kept or transferred to others at will;
3. Whoever has the most units of this resource at a set time receives special treatment.
• This is a delegated voting system
Voting as Currency
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An Altruistic trading system
could rank people by contribution
made.
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 …
James Beckett, +60h –15h, Rate= -0.35Computer programming, Computer Hardware, Electronics, Internet Advice …
Angela Robinson, +550h –175h, Rating= 70h Can you help me with my Laptop? The E-mail is giving me a lot…
Mike Channel, +120h –40h, Rate= 10hHelp! My scanner doesn’t seem to work. I urgently need it to do a job on Nov. …
!!
Graham Upton, +3h –2h, Rate= 20hI just can’t get my Wireless LAN working properly. It keeps cutting out, just …
Need to Reward Generosity not selfishness…
Computer/Hardware/Repair
Relationship Credit
. Gratuitous Self-Publicity!
This would reward altruism by
meaning that the most generous
people’s requests were met more
quickly...
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Altruistically-Minded others to help program
An Internet communication layer necessary to implement
Altruistic Economics - www.altruists.org/ae
WANTED !!!