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Union Square Ventures is an early stage venture capital fund located in New York City. We focus on IT-enabled services in the media & marketing, financial services, healthcare and telecom verticals. We look to back passionate, experienced entrepreneurs who are focused on creating highly scalable services and significant value propositions for their end users.
Hear Fred Wilson on Businessweek's Blogspotting podcast. from spring 2006. Also, listen to Fred and Brad's most recent Businessweek podcast in fall 2006.

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Sessions Top Ten Insights - Five

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One of the insights from our Sessions event was from Yochai Benkler who said the following about peer production:

we do have very good research on how adding money undermines social motivations depending on contents

I am not sure how to intepret that last part - "depending on contents" - but Yochai's point that "adding money undermines social motivations" is something that ought to be watched carefully.

One place we can watch it carefully is Amazon's recently announced Mechanical Turk service, mturk.com.

Mechanical Turk is about peer producing HITs.

According to Amazon, a HIT is a Human Intelligent Task, ie something that humans do better than computers. Like identifying photos or filling out captchas.

If you need a human to do something, you send a HIT request (via the mturk API) to Amazon.

The HIT is displayed to the masses, who then complete them, and get paid for doing so.

This is an attempt to automate peer production and add a payment system on top of it.

So we'll see if this service "undermined" by the money involved.

In the meantime, I've suggested to a couple of our portfolio companies who have mundane operational taks that they'd love to outsource to check mechanical turk out. Let's see what kind of results they get.

Note: You can find the research Fred references on pages 321-328 of Yochai’s paper Sharing Nicely http://benkler.org/SharingNicely.html where he references the extensive work done by Bruno S. Frey among others.

November 5, 2005 12:24 PM, By Fred Wilson
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