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Re: Rcee: [jox] A response to Michel and Jakob



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thanks Jakob, it will appear in 2 hours or so,

see:
http://blog.p2pfoundation.net/what-is-wrong-with-attention-economy-a-response-to-michel-bauwens/2012/03/23

Michel

On Fri, Mar 23, 2012 at 6:38 PM, Jakob Rigi <rigij ceu.hu> wrote:

Hi Michel,

Would you like to publish the following piece in your p2p Foundation site?
It is a summary of our exchange on face book, I have also added Michael
view on Facebook earning money through stock Market.
All the best
Jkob
H

 Jakob Rigi (Central European University)******

* *

*What is wrong with attention economy ?: A response to Michel Bauwens *

 ****

Michel Bauwens published an article entitled ?Will Capitalism Survive
?Value Abundance?? which is republished in this site.  Critiquing Lands
and Bohm, and echoing my argument in the article published also in this
site, he states that users do not create exchange value in the way in which
the wage labor does. But , then he claims that users create indirectly
exchange value. How? They, he claims, they help  facebook, to create  pool
of attention and sell it as a commodity to advisors.  ****

Attention is a result of the activities of users such as  seeing and
hearing. So users are the one who produce the pool of attention. Now if the
attention is a commodity, then facebook participants produce directly
exchange value. And the whole of this value is expropriated by facebook.
 ****

Now, I think that the claim that Facebook is selling attention to
advertisers is categorically mistaken. No. Facebook is letting pieces of
virtual space to advertisers and receive rent for it. The law of rent is
the same in virtual and physical spaces. The more attractive a space, for
whatever reasons, is, the amount of rent is higher. Who does pay the rent?
Advertisers.  From where do the advertisers get the money that they pay
as rent to fcaeebook? That money is part of the surplus value that they
extract from wage labor which is exchanged with capital.  Bauwens? and  Beller?s
mistake may stem from the fact that there is a direct relation between the
number of clicks by users and the amount of rent that facebook extracts.
This creates the ?optical? illusion that the users' attention is the source
of value. A 2 bed room apartment in a posh area of Manhattan can collect a
rent of 6 000 USD or even more, per month but the same apartment in Queens
could barely collect 1200 USD. The location makes the place more attractive
but has nothing to do with  the origin of  rent. The same is true of
attention in relation virtual spaces (whether Facebook or the screen of
television, or cinema). The level of attention is an index of the level of
their attractiveness of the space and hence determines the level of rent.
However, attention does not produce a penny of exchange value. To use
Hegelian-Marxian terminology, those who claim that  attention is a
commodity confuse the appearance with the essence, and hence, mystify the
exploitation of labor by capital. ****

Of course attention is a major aspect of productive labor (labor exchanged
with capital). Only in this capacity attention combined with other aspects
of such labor can produce exchange value and surplus value. ****

** **

Michael Goldhaber (2012, in a mailing to journal Oekonux.org), an
economist of attention, agrees that Facebook is not selling attention. And
suggests that Facebook  currently earns its money through Stock Market,
which is true. We can qualify his argument by adding that value of the
shares of facebook in stock market are conditioned upon speculations on
being rentable through advertisement. ****

** **
ere is the piece:


Michel Bauwens <michel p2pfoundation.net> 03/23/12 9:36 AM >>>
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seems you agree with Jakob than on this score,

the facebook ad stats are cited here at
http://www.aljazeera.com/indepth/opinion/2012/02/20122277438762233.html,
a
few $ per user at this stage

On Fri, Mar 23, 2012 at 2:51 PM, Michael H Goldhaber <mgoldh well.com>wrote:


Hello Michel and Jakob, Toni, et al. ,

Thanks for your query, belated Happy Birthday, Michel, and here's a
short
answer.

I disagree strongly that attention can be either bought or sold for
money.
At best, an organization like Facebook, whatever it thinks it's doing,
can
only sell a chance to get a user's attention. If the ad is boring or
irrelevant and not in itself attention-getting on its own terms, it
certainly won't work. And even if it is, in theory, that doesn't mean
that
the user will necessarily pay it any attention.

Instead, Facebook offers an opportunity for users to get attention from
their friends or friends of friends, etc. The way Facebook is able to
pay
for the ability to offer this is another story. So far, it's done it
mostly
through selling stock. Eventually, if it's to keep going it will
presumably
have to find some way to satisfy the stockholders that it has decent
"earnings per share". But these earnings may be quite small for each
user.
If the advertising model works, those who fall for the ads, will have ot
pay a premium for whatever they buy that will go to pay the advertising
cosets, and therefore the costs, among other things, of buying the
advertising space form Facebook. In this way, the costs of an ad on
Facebook may be compared , very roughly to the rent for a billboard or
the
like, but again, the billboard or the Facebook ad will have to rely for
its effectiveness at least in part on the genius of the ad's creators as
well as the desirability and interest of whatever is being sold. The
advertisers will have ot compete with the attention-getting ability of
the
friends of each particular user. Often to compete efffectively ,
advertsiers will rely on stars or beautiful models, etc. to grace their
ads
or endorse the products, and these endorsers will alos have to be paid
out
of the proceeds of selling whatever "it" is.

Michael H. Goldhaber

michael goldhaber.org
mgoldh well.com
blog www.goldhaber.org
older site, www.well.com/user/mgoldh




On Mar 22, 2012, at 12:11 AM, Michel Bauwens wrote:

Thanks Jakob, definitely an interesting thesis,

and it sets me thinking, but still very ambivalent about the analogy
between physical and virtual rent .... I copy Eduard Miller in, he's a
Georgist very keen on land valuation tax,

Eduard, the thesis of Jakob is that Facebook is extracting rent from
'virtual space', like it would happen with physical land,

as opposed to the attention economy thesis, where it is the attention
that
is being sold ...

Michel

On Thu, Mar 22, 2012 at 6:51 AM, Jakob Rigi <rigij ceu.hu> wrote:

hi,
sorry for wrong spelling. I meant clicks.
jakob

"Jakob Rigi" **03/21/12 7:36 PM >>>

Hi Michel,
The number of cliques possibly showes how crowded the space is. The
more
crowded, the more rent. Or?
Jakob

Michel Bauwens <michel p2pfoundation.net> 03/21/12 3:47 PM >>>
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a possible counter-argument ... a lot of online ad systems and possibly
including facebook, only charge for actual clicking and transactions,
not
just rent for the ad being there ... would this not be a form of
actualised
attention ? but in any case, the attention is the condition for the
rent,
but you may be right that the 'real' thing being sold is the result of
attention, but not attention itself

On Thu, Mar 22, 2012 at 2:44 AM, Michel Bauwens <
michel p2pfoundation.net>wrote:


I don't think I argue that facebook users produce exchange value at
all,
except indirectly by virtue of their attention ... but your argument
of
rent spaces is of great interest, and illuminating I think ... I
wonder
what attention economist Michael Gol dhaber thinks of your argument,
so
I
put him in cc,

Michel


On Thu, Mar 22, 2012 at 2:22 AM, Jakob Rigi <rigij ceu.hu> wrote:

Hi Michel,
First, thanks for information on AOL. I am writing a full article on
this. I live the discussion on knowledge economy to this more
elaborate
article. But shortly, the rent extracted by knwledge economy is not
pocketed by knowledge workers but big capitalists. Star knowledge
workers
get some of this rent, but not every knowledge worker. Here, I just
limit
myself to faceebook. In your piece in Al Jazeera you say that
facebook
users do not create exchange value in the oppening part of the
articl, but, then in the middle you calim that they produce exchange
value. Ho?, you say they produce coomunicative use values by writing
and posting. And you say that these communicative use value are not
commodities. I agree. But, then you claim that participation in
these
activities is creating a pool of attention which is sold as a
commodity by
facebook as a commodity. I disagree.
Attention is result of activities of users such as , seeing and
hearing. . So users produce the pool of attention. Now if the
attention
is a commodity, then facebook participants produce directly exchange
value.
And the whole this value is surplus value, because the fecaebook
participants do not receive wages from facebook. Jonathan Beller has
developed a whole theory in this style of argumentation and coined a
new
term "Cinematic mode of production".

Now, I think both you and Beller are categorically mistaken in
claiming
that Facebook is selling attension to advertisers. No, facebook is
letting
pieces of virtual space to adverisers and receive rent for it. The
law
of
rent are the same in virtual and physical spaces. The more
attractive
a
space, for whatever reason is, the amount of rent is higher. Who
does
pay
the rent advertisers? From where do the advertisers get the rent
that
they
pay to fcaeebook? That is part of the surplus value they extract fom
their
own workers. Now, both you and Beller mistake has a ligitimartment
te
source. There is a dierect relation between the number of users and
amount
of rent that facebook collects. And this create the llusion that
users'
attention is the source of money. An 2 bed room apartment in a posh
area
of Manhatan can collect a rent of 6 000 USd, but the same apartment
in
Queens could barelly collect 1200 USD. Now the location makes the
place
more attr active but has not to do with producing the rent. The same
is
true of attension for virtual spaces. Attension makes them
attractive
and
help them to extract higher reents but does not produce a peny of
exchange
value. We really need Hegel and Dialectics.

all the best
Jakob
does
Michel Bauwens <michel p2pfoundation.net> 03/21/12 9:29 AM >>>
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hi jakob, if I remember it correctly, AOL hugely depended for its
success
on forum volunteers, I think this is what she is referring to ..

Could you send me a final text that I could publish on the p2p blog,
unless
I have already done so?

I do find the thesis problematic myself, because it accepts that the
only
& gt;> worthy value is exchange value. But knowledge workers <are>
creating
value
for society, use value, communicative value and many other types of
non-monetary value. It is this peer to peer exchange that should be
protected, and why we need 1) to create our own platforms and
networks
2)
refuse commodification of this 3) replace revenue-sharing by benefit
sharing 4) find a solution for our social reproduction needs,

No, peer producers are not exploiting wage workers and extracting
value
for
them, we are creating value, for them, and we are one and the same
..
the
knowledge workers are now the primary expression of the working
class
in
the western world, who don't own capital and still need to sell
their
labour time in order to survive,

Michel

On We d, Mar 21, 2012 at 6:00 AM, Jakob Rigi <rigij ceu.hu> wrote:

Hi All,

I read Tiziana Terranova`s artickle `Free Labor: Producing for
Digital
Economy ` for the first time this evening.I want to see whether
she
offers
a particular arguement of why as Michel claims in his piecen
Ajazeera
the
pool ofattention of the users produce value for facebook.
Terranova claims the AOL was run by Volunteer labor. Can any one
of
you
explain this for me? Or email me please titls of books or
articles?

Meanwhile, I enclose a piece I wrot eon facebook,
CHEERS JAKOB

**** **

? Occupy Wall Street and the Peer-to-Peer Revolution: a discussion
with
Michel Bauwens Part I

** **

Jakob Rigi





A brief response to Chris Land?s and Steffen Bohm?s Short Essay:
?They
are
exploiting us! Why we all work for Facebbok for free?

** **

The gist of the essay is the following hypothesis: The users of
Facebook
produce value in the same way as wage workers produce it. Hence,
Facebook
exploits users by expropriating this value.

** **

Although I have a great respect for Land?s and Bohm?s good
intentions
and
sympathize with their anti Facebook sentiments their claim that
Facebook
exploits users by extracting value from them is wrong.

** **

Facebook definitely exploits someone. But whom? The answer is: the
total
world wage labor which is exchanged with capital (variable
capital),
including its own workers. This is Marx?s definition of productive
labor
under capitalism. From the point of view of capital only the labor
that
produces value and surplus value is productive. Only, in this
limited
sense
productive labor is equated with the wage labor, whether material
or
immaterial, which is exchanged with capital. Otherwise, all labor
as
far as
it is a purposeful activity is productive, because it produces
something,
whether material or immaterial.

** **
& gt; >
A small part of the value expropriated by face book is produced by
its
own
paid workers, and the overwhelming rest of such value consists of
rents
which are extracted from the worldwide wage labor (both material
and
immaterial) which is exchanged with capital. Hence to claim that
Facebook
users produce value is to deny the role of wage laborers and their
antagonism to rent-extracting entities such as faceebook and
google.

** **

Marx, in Vol. 3 of Capital, demonstrates how the surplus values
that
are produced
by different sections of working class become a total pool and
then
are
redistributed among industrial and commercial capitalists ( in the
form
of profit), Bankers (in the form of interest ), a nd land owners
(in
the
form of rent). So the source of both interest and rent is surplus
value
produced by the labor which is exchanged with capital. We use
banks
on
daily basis and banks lend our money (savings, pensions..) to
others
in
exchange for interests. It would be absurd to claim that users of
banks
produce value for banks. We spend time and energy to use bank
services,
even when we use credit cards. But this energy -time does not
produce
value, because it is not exchanged with capital. Even when users
pay
fees
to banks for using services they, do not produce values but buy
values
which are produced by bank workers. It is equally absurd to claim
that
the
users of Facebook and Google produce value. Facebook and Google
extract
rents that are parts of the total surplus value which is produced
by
the
wage laborers worldwide, including their own workers.

Actually the knowledge economy in general rests on the shoulders
of
the
wage labor which is exchanged with capital outside it. The
overwhelming
part of the value circulating in the knowledge economy is produced
by
wage
labor outside it, though knowledge workers themselves also
contribute
to
the total surplus value to the extent that their labor is
exchanged
with
capital (variable capital).

** **

The thesis that users produce value for facebook may lead to the
following
practical misleading conclusion. The users should build their own
p2p
cooperatives of Facebo oks and Googles, and sell information and
collect
fees for adverts. According to the thesis this is a fair exchange,
because,
the members of such cooperatives appropriate the value they
themselves
have
produced. But, such cooperatives only replace Facebook in
extracting
surplus value in the form of rent from the wage labor. The thesis
foregrounds rentier forms of p2p communities. Hence, the thesis is
indeed a mystification of the exploitation of labor by capital.

To conclude the claim that users produce value for facebook is a
very
bad thesis. We should not fight to become rent suckers but to
abolish
wage
labor, surplus value, in all its forms including rent
omments are welcome, as I try to expand the essay.

;


Toni Prug <toni.prug gmail.com> 03/20/12 9:15 PM >>>
How do we run a city without accounting? A region? A state? How
do
we collect contributions, as we do in the forms of tax and
money
today? We ask for tax to be voluntarily donated and hope for
the
best?

How does Wikipedia collect contributions? Or Free Software? Or
WikiSpeed? They let the people contribute, because they want to.
The
rest is organization -- which is done in the same way: by
voluntary
contributions.

It is a huge topic, so i will limit my response to this small bit.

Monetary contributions to Wikipedia and Free Software are such a
tiny
*>> > part of the overall cost of those productions that it is hardly
worth
mentioning - since the actual cost is not the cost of
infrastructure
and
core staff, but the cost of reproduction and spare time of all the
contributing volunteers.

In other words, those economic activities that pay for the
housing,
clothes, food and the rest of living costs of all contributors are
the
activities on which p2p entirely depends - wages, studentships,
parents'
funds, inheritances ... all earned or created in capitalist or
other
existing systems based on commodities, exchange, labour, money,
value.

To be more precise, p2p is an incredibly thin, but an important
new
(i
agree with the need to research it), way of producing voluntarily
and
collectively. However, it seems quite inappropriate to call it a
mode
of
production, since it rests on top other modes and fully depends on
them.

To put in simple terms (without entering economics or marxist
terminology): on its own, p2p can't build, mantain and develop a
city,
nor can it organize division of labour and allocation of overall
produced wealth necessary for such achievements. While slavery,
feudalism, capitalism and socialism all could/can.

It's not a surprise that p2p theorists have not been able so far
to
produce a plausible vision of how a p2p society perhaps might one
day
delivery cities and rest that other modes of production delivered
so
far
and that we wish to improve on. Producing such vi sions is a task
too
difficult for anyone or any group of humans - this is one
important
thing to learn from social sciences (equally from Marx, or Keynes,
or
neoclassical economics and political theorists): there are too
many
complexities involved.

Hence the need to stick with analysing the existing p2p practices,
and
to recognize conditions in which those practices exist - the above
mentioned total dependence on other dominant modes of production
being
the starting point.

Yes, you may rightly say, new starts its existence in the old. You
may
also say that there are new phenomena which are able to boot-strap
itself out of the old and create a new totality on their own. The
problem is, nothing so far points out in the direction of p2p
being
such
a new phenomena able to become an overall logic of organizing the
entire
society (mode of production, if you wish), due to its full
dependence
on
the existing modes of production - i'm speaking here as a p2p fan
and
as
a former and occasional p2p practitioner who would love to see any
evidence of the opposite.

______________________________
http://www.oekonux.org/journal




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______________________________
http://www.oekonux.org/journal
*




--
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______________________________
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