{"id":110,"date":"2014-12-04T23:00:07","date_gmt":"2014-12-04T23:00:07","guid":{"rendered":"https:\/\/integrations.pressbooks.network\/openedreader\/chapter\/coases-penguin-or-linux-and-the-nature-of-the-firm\/"},"modified":"2019-11-06T21:33:26","modified_gmt":"2019-11-06T21:33:26","slug":"coases-penguin-or-linux-and-the-nature-of-the-firm","status":"publish","type":"chapter","link":"https:\/\/integrations.pressbooks.network\/openedreader\/chapter\/coases-penguin-or-linux-and-the-nature-of-the-firm\/","title":{"raw":"Yochai Benkler, “Coases Penguin, or Linux and The Nature of the Firm”","rendered":"Yochai Benkler, “Coases Penguin, or Linux and The Nature of the Firm”"},"content":{"raw":"Read the article at http:\/\/www.yale.edu\/yalelj\/112\/BenklerWEB.pdf<\/a>\n\nBackground<\/strong>\n\nYochai Benkler\u2019s \u201cCoase\u2019s Penguin, or, Linux and The Nature of the Firm\u201d was written at the beginning of the Web 2.0 age and has provided very accurate frameworks for viewing the expansion of peer-driven projects in the internet atmosphere. \u00a0By applying fundamental economic thought to these projects, Benkler shows that that they actually can grow out of our current models and should be as fundamental as the models we use right now. \u00a0Coase, an influential economists, introduced a model of firm formation in 1960. \u00a0The model worked well until the rise of the internet showed instances where individuals and structures (like Linus and the Linux project) defied the model. \u00a0Through examining these modern exceptions with the same framework of assumptions as Coase used writing The Nature of the Firm, Benkler extends the model to form an additional model of peer production, which could be help society understand whether to use free markets, firms, or peer-production structures to efficiently optimize production.\n\nKey Points<\/strong>\n\nDespite models and theory that would say that individuals won\u2019t expend large efforts on work on projects in which they receive no (monetary) reward, we see that quite a few do, e.g GNU, NASA click worker, Wikipedia, Project Gutenberg, academia etc.\n\nPart I illustrates the \u201cphenomenon of large- and medium scale collaborations among individuals that are organized without markets or managerial hierarchies\u201d that are \u201cemerging everywhere in the information and cultural production system.\u201d\n\nPart II is the\u00a0framework for explaining this phenomenon. Many individuals independently search the available information and opportunities to participate. They self-identify their tasks for various reasons. Individuals choose their own tasks, which makes them more viable. This requires a review system so that people don\u2019t take on something they can\u2019t do. Also part II explains the advantages of \u201ccommons-based peer production\u201d over markets or firms. They have improved identification and allocation of creative\/capable people to achieve certain tasks. Commons-based peer production has a distinct advantage, drawing upon the creativity of many.\n\nPart III is about motivation. Nobody will invest if they can\u2019t benefit from it so motivation plays an important role. There are diverse types of motivation and each will attract different people.\n\nOpen Projects should be:\n