Qotw4: Gift Economies…Is it as free as it seems.

Lewis Hyde authored the book, The Gift: The Erotic Life of Property. He wrote about two types of economies, one a market economy and the other the gift economy. In the former, status is conferred to “those who have the most”, while the status in the latter is determined by “those who give the most to others” (Pinchot, 2000). The gift economy is especially prominent in the cyberspace with the advent of blogs, file-sharing and virtual communities.

Motivations
Peter Kollock states that the motivations for contributing in this digital age are reciprocity, prestige, efficacy and need, and attachment or commitment (Kollock, 1999).Therefore, there is no such thing as an individual wanting the public to benefit from it. In fact, their main motivation is to gain something back from their action. Newton’s Third Law of Motion, states that ‘every action has an equal and opposite reaction’. For example, the Internet appears to be a place where individuals give and receive advice in the case of virtual communities. Peter Kollack’s reasons seem to imply that the real intention behind a gift economy is not selflessness but actually selfishness. Selfishness may be a too strong a word, self-interest may be a better word.



Reciprocity
“By virtue of the reciprocity rule…we are obligated to the future payment of favours, gifts, invitations, and the like”. According to Cialdini, this human tendency to reciprocate makes it one of the most potent weapons of influence (Cialdini, 2001).



Prestige
Kollock mentions that prestige is a key to helping others as it can help you impress people. No one wants people to think badly of him or her. Hence, by willingly helping others, one can impress others or at times even widen their own social network. Maybe through this way, the average Joe can have his ‘fifteen minutes of fame’. “Abundant descriptive evidence suggests that the prestige benefits from public recognition of donations are an important reason why people give” (Harbaugh, 1998). Therefore, it is safe to assume that people share information to reap the same benefits.

Efficacy and Need
People who wish to have an effect on their environment normally want to feel important. Hence, they contribute “valuable information” to create that feeling. This need paves the way for attachment.

Attachment
The sense of belonging one feels from a gift economy can be the reason behind their contribution. This reminds me of an incident cited by a visiting professor, Dr. John Hocking. He once recalled going to a KKK (Ku Klux Klan) meeting as an observer. He came across a man who tried to intimate Dr. Hocking and his colleague because they were the only ones who were not wearing the uniform.

According to the professor, he felt that the man was lacking in self-esteem. As a result, the man was attached to the Klan, as it gave him a sense of belonging. The resulting increased in self-esteem caused him to try his hand at bullying outsiders. This does not mean that whoever who feels attached to something has a low self-esteem. The analogy drawn from this characterizes one of the effects of the gift economy, which is the ability to feel part of a bigger picture.

Though the ulterior intent behind these factors is self-interest, we can not deny the wealth of information or services provided by gift economies.

Example
The WELL (Whole Earth 'Lectronic Link) is an online virtual community whose members range from “authors, programmers, journalists, activists to other creative people” from all over the world, who come together for intellectual stimulation. It was known as "the world's most influential online community" in the feature story in an issue of the Wired Magazine (Salon.com community, 2001).


It is one of the oldest virtual communities with a current membership of 4000 (WELL, 2007).Steward Brand and Larry Brilliant created the WELL in 1985. Though its origins lay in California ,it is now based in San Francisco.

A notable member is Howard Rheingold who was inspired by his experience in the community,to write a book “The Virtual Community”. From this perspective,it is safe to say that Rheingold was pursuing a selfless act for the greater good. Perhaps,he was motivated by his writing abilites and decided to earn money from it.

Conclusion
On the surface, gift economies seem to be amazing. It shows how the human race is going back to its roots by acting based on the group interest, just like the tribal age. However, it is important to note that gift economies do have its limitations. As Kollock puts it, “it is very difficult to create and maintain a cooperative online community”.


References
Pinchot, G (2000,June,29). The Gift Economy. In Context:Business On A Small Planet, 41, Retrieved February 9,2007, from http://www.context.org/ICLIB/IC41/PinchotG.htm

Cialdini, R (2001). Influence:Science and Practice. Allyn and Bacon.

Kollock, P (1999). Gifts and Public Goods in Cyberspace . Retrieved February 9, 2007, from The Economies of Online Cooperation Web site: http://www.sscnet.ucla.edu/soc/faculty/kollock/papers/economies.htm

Harbaugh, W (1998). The Prestige Motive For Making Charitable Transfers. The American Economic Review, 88, Retrieved February 10,2007, from http://links.jstor.org/sici?sici=0002-8282%28199805%2988%3A2%3C277%3ATPMFMC%3E2.0.CO%3B2-9&size=LARGE
Salon.com community, (2001). Learn About The WELL. Retrieved February 9, 2007, from The WELL Web site: http://www.well.com/aboutwell.html

(2007,6 February). WELL. Retrieved February 9, 2007, from Wikipedia Web site: http://en.wikipedia.org/w/index.php?title=WELL&oldid=106008292