Tag Archives: economics

The Goonswarm

I’ve lost the attribution note for where I found this piece, so apologies for the lack of source (it’s been sat in my Evernote inbox waiting to be read for a couple of weeks now), but given Monday’s mention of EVE I thought it well worth dragging out into the sunlight, even though it’s a few months old. So: gamer blog Rock Paper Shotgun did a long interview with an EVE player known as The Mittani – CEO of Goon Fleet, the Something Awful forum’s in-game clade – shortly before his election as chair of the Council of Stellar Management, which is CCP’s mechnaism for enfranchising EVE players as stakeholders in its long-term development, and it’s well worth a read.

If you’re thinking “why would I want to read an interview with some MMO ubergeek?”, I hazard to suggest you’re making a category error; The Mittani is more than just a player of games, he’s the figurehead and autocratic leader of a virtual corporation comprised of over ten thousand real people… and that corporation has, it would appear, engendered a significant cultural shift in the imaginary galaxy where it resides, as well as in parts of the real world in which that virtuality is embedded. He is shamelessly cocky yet also disarmingly modest, and talks more common sense about leadership than the vast majority of the biz-speak hucksters that the blogosphere teems with.

I’m not suggesting you need to admire him, or even like him. But I’m saying with certainty he’s a fascinating character. A few snips to tempt you with:

RPS: So what happened to Band of Brothers?

MT: I, uh, disbanded them.

RPS: What? How was that even your choice?

MT: At the beginning of the second stage of the Great War we had a defector from the executor corporation of Band of Brothers who thought that we were cooler guys. Basically he thought that his alliance was full of assholes, because their leadership structure was full of guys who wanted to be in “the most elite alliance in Eve”. Whereas Goonswarm, a lot of the time, were bad. We had a lot of newbies and no pretentions.

The disbanding itself was covered by the BBC. Ordinarily when you have a defector you do smash and grabs, just getting the other guy to steal everything that’s not nailed down and come over to your side. Now, I was still just the spymaster at this point, and I was sitting there in my office and I had this brain fart – with the access that this guy had, he had the authority to kick out every single corporation in the alliance and then shut down his own corporation, thus disbanding the alliance, which has the impact of disabling all the sovereignty defenses in their region. This had never been done before. All of a sudden I was like, “Holy shit! I can do this!”

Also, at the time Goonswarm owned half the galaxy. We controlled all of these regions, but as soon as we disbanded Band of Brothers we abandoned everything and all moved into what had been their territory. Over the course of two very bloody months we purged them and took all their space.

RPS: You hated them that much?

MT: Well, this goes back to the T20 scandal and these people declaring us a cancer on Eve. The entire Great War took four years, so yeah, maybe we were a little vengeful.

[…]

RPS: Do you think the Great War happened because you guys needed something to keep you entertained?

MT: No, it really was a bitter grudge war. They took it outside of the game. When they invaded Syndicate space it wasn’t a retaliation, it was them saying that Goons are bad human beings. …one higher up at Band of Brothers said “this is as personal as it ever gets”. And then it came out that one of their leaders was a CCP developer who was giving them items, which ignited a huge firestorm of controversy. You had these elite players who were the paragons of the old guard telling everybody, quite literally, “We’re better than you”, and then it turns out they’re a bunch of disgusting cheaters who are being given some of the most valuable items in the game by the developers.

RPS: What’s next for you guys?

MT: People ask us that a lot, but we don’t plan more than a month or two in advance… we do scheme a lot, because thanks to our spy network, we know what the other alliances are doing. But fanfest usually brings everything to a crashing halt. The game gets really boring around fanfest, because everyone’s planning on coming here.

We are griefers. If nothing is going to happen then we’re going to try to find something that screams and bleeds and poke at it.

[…]

RPS: Do you feel like expanding on what you said as we were walking over here, about Eve being a terrible game and that it’s the players who make it interesting?

MT: Well, I suppose since I’m going to be on the Council of Stellar Management and I’m probably going to be the Chairman I should probably clarify that.

Eve, for Goons, is fun because we play with Goons. By itself, it’s a game where you have to jump through a lot of hoops to have fun. I think all the small fixes CCP are doing at present are good. Eve players make fun of World of Warcraft a lot, but if you look at what Blizzard has done ironing out all those flaws and annoyances, it’s a tremendous achievement. Eve’s learning curve is vertical, and full of spikes, and the beautiful side of Eve is the image of it that players have in their heads.

The best analogy for Eve is this: 1% of the time, when you take part in a massive fleet fight, or take part in some epic espionage caper or something, it is the most fun game you will ever encounter. 99% of the time you’re just waiting for something to happen. But it’s that 1% that hooks people like crack cocaine. I mean, you don’t get interviewed by the BBC when you win a WoW raid.

RPS: For my money, Eve might be the most fascinating game in existence today. But that doesn’t stop it from being interminably boring as well.

MT: Right. I mean most Eve players are stuck in high security space mining, and a lot of the core PvE in Eve has you sitting there are watching three grey bars slowly turn red.

Lots more interesting stuff in there, not least of which is the revelation – not entirely surprising in retrospect, I suppose – that CCP has its own in-house professor of economics. Wow.

I really need to stop admiring this world from afar and get my hands dirty, don’t I? Are there any EVErs in the Futurismic readership who’d be willing to show me the ropes?

The Vanity Riots: weird goings-on at EVE Online

My from-a-distance fascination with EVE Online continues to grow*; its complex and anarchic political and economic scenes make for fascinating headlines, and it strikes me as the best extant model for the economically distinct synthetic worlds of the future. Ars Technica has a two-page piece on a recent EVE flap wherein the developers, CCP, started making an assortment of “vanity items” available for sale within the game. The economic set-up in EVE is complex, permitting money to flow in from meatspace as well as encouraging in-game trading, and players kicked off an extensive campaign of (in-world) disobedience and protest, thinking that CCP had handed a naked advantage to players who were financially better off in the reality outside the game.

Pretty much a carbon copy of meatspace protests over poorly-explained new laws or policies, which is interesting enough. But the second page has an innocuous-seeming paragraph that leapt out at me as being more astonishing than it appears:

EVE Online is one of the few games which has a formal player organization to speak for the customers of the game, called the Council of Stellar Management. The members of the CSM are democratically elected, and they present the concerns of players to CCP in order to keep everything running smoothly. As players continued to disrupt the game and CCP began to take a beating in the court of public opinion, the CSM was flown to the company’s offices in Iceland in order to discuss the issue of microtransactions.

Think about that for a second: not only does EVE have an elected player council, but said council was flown in to CCP’s HQ at CCP’s expense to sort things out. That’s a company that takes its userbase very seriously indeed.. As the Ars piece points out, this is at least partly due to necessity, but that necessity s a function of the freedom and engagement with the synthetic space that CCP has permitted since the start. I wonder if we’ll soon see more businesses that are not only this close to their clientele, but who genuinely understand that closeness as the foundation of their model… it’s a big step in the direction of cooperatives, which might make for a fine replacement for the increasingly-untrusted corporation in a world where nation-statehood is losing its grip.

Additional virtual worlds news, via Terra Nova: a Chinese insurance firm has started to offer what may be the first insurance policies to cover against loss or theft of goods in virtual worlds. As Castronova points out, insurance for intangible goods is nothing new… but intangible goods that only exist in a certain walled garden in cyberspace? That’s a new development.

[ * Yeah, I know, I should probably just sign up for an account and try it out, but I know how prone to addictive behaviours I am, and I have work that needs doing that won’t be much helped by my attempting to explore an anarchic virtual star-cluster. Unless someone wanted to pay me to write the story, that is. Hmmm. ]

Saturnine storms and the second space race

T’ain’t just us Earthlings experiencing erratic weather, y’know; check out this rather vast storm on Saturn, courtesy the Cassini probe. Audio is also available.

Storm on Saturn - image courtesy NASATomorrow, if all goes to plan, the Space Shuttle will launch for its very last mission before retirement (to fates as yet undecided – museum piece or rich man’s megabauble?) Cue inevitable soul-searching all over the place; here’s The Economist sounding the death knell for outer space.

It is quite conceivable that 36,000km will prove the limit of human ambition. It is equally conceivable that the fantasy-made-reality of human space flight will return to fantasy. It is likely that the Space Age is over.

Today’s space cadets will, no doubt, oppose that claim vigorously. They will, in particular, point to the private ventures of people like Elon Musk in America and Sir Richard Branson in Britain, who hope to make human space flight commercially viable. Indeed, the enterprise of such people might do just that. But the market seems small and vulnerable. One part, space tourism, is a luxury service that is, in any case, unlikely to go beyond low-Earth orbit at best (the cost of getting even as far as the moon would reduce the number of potential clients to a handful). The other source of revenue is ferrying astronauts to the benighted International Space Station (ISS), surely the biggest waste of money, at $100 billion and counting, that has ever been built in the name of science.

Well, space cadet is as space cadet does, right? Here’s a response from Paul Gilster at Centauri Dreams:

As commercial space efforts move forward, a broader defense of a human future in space has to take the long-term view. Given the dangers that beset our planet, from ecological issues to economic turmoil and the potential for war, can we frame a solution that offers a rational backup plan for humanity? Planetary self-defense also involves the need for the tools to alter the trajectory of any object with the potential to strike the Earth with deadly force, and that means expanding, not contracting, our space-borne assets. Such work is not purely technical. It also teaches the invaluable lesson of multi-generational responsibility and holds out the promise of frontiers. Such challenges have enriched our early history and provide us a clear path off our planet.

We’re also a curious species, and it’s hard to see us pulling back from the challenge of answering the crucial question of whether we are alone in the galaxy. There is a huge gap, asThe Economist points out, between where we stand with space technology today and where we fantasized being as we looked forward from the Apollo days. But a case can be made for steady and incremental research that gives us new propulsion options and broadens our knowledge of how life emerges even as it protects our future. A future that includes gradual expansion into space-based habitats and the exploitation of our system’s abundant resources is an alternative to The Economist’s vision, and it’s one the public needs to hear. The infrastructure that it would build will demand the tools and the skills to move ever deeper into our system and beyond.

An editorial piece at New Scientist is similarly – if cautiously – optimistic about a NASA renaissance rather than a recession; there’s certainly lots of can-do rhetoric from them, not to mention hungry competition from up-and-coming nations with cash to spend and ambitions to fulfil. But given that the new proposed NASA budget will axe projects like the James Webb orbital telescope – Hubble’s successor, basically – I’m not sure how much mileage there is in brave words and stoic chest-thumping. Hell, some folk are even wondering whether the Space Shuttle program itself wasn’t a massive and very costly mistake [beware irritating interstitial ad; via Chairman Bruce]:

The selection in 1972 of an ambitious and technologically challenging shuttle design resulted in the most complex machine ever built. Rather than lowering the costs of access to space and making it routine, the space shuttle turned out to be an experimental vehicle with multiple inherent risks, requiring extreme care and high costs to operate safely. Other, simpler designs were considered in 1971 in the run-up to President Nixon’s final decision; in retrospect, taking a more evolutionary approach by developing one of them instead would probably have been a better choice.

[…]

Today we are in danger of repeating that mistake, given Congressional and industry pressure to move rapidly to the development of a heavy lift launch vehicle without a clear sense of how that vehicle will be used.  Important factors in the decision to move forward with the shuttle were the desire to preserve Apollo-era NASA and contractor jobs, and the political impact of program approval on the 1972 presidential election. Similar pressures are influential today. If we learn anything from the space shuttle experience, it should be that making choices with multidecade consequences on such short-term considerations is poor public policy.

And if we’ve learned anything from life in general, it’s that expecting politicians to think further ahead than the next election is a doomed enterprise. For my money, I think space exploration still has a future, but – in the West at least, and particularly the US – that future will be increasingly dominated by private enterprise.

This is a nicely resonant topic for me, as it happens. I spent last weekend in London for the Science Fiction Foundation‘s Masterclass, and one of the topics we tackled was the representation of space exploration in contemporary science fiction texts. The inescapable conclusion (for me, at least) is that space sf is dominated by a sense of nostalgia, but also – especially in what you might refer to as “heartland” sf venues like Analog and Asimov’s, whose readership were around to be inspired by the hollow rhetoric of the Apollo program – there’s a void at its heart.

Old-school space advocates have a tendency to talk about space in terms of glory, accomplishment and a sort of noble and patriotic heroism, a taming of the wild rolling plains… indeed, that whole “final frontier” riff probably sounds even sweeter, after ten misguided years of failed attempts to plant the stars’n’bars on other more mundane frontiers – as far as we know, space has no uppity natives to object to your delivery of democracy and neoliberal corporatist economics, which gives it a blank-slate patina that you can’t get anywhere else.

But therein lies the problem, and – or so I suspect – the reason why the American Dream (Extraterrestrial Edition) has faltered: beyond that noble rhetoric, the Apollo program was an ambitious (and successful) pissing contest with Russia. All the other motivations and ideals were grafted on after the fact, and they’ve all fallen away like burned-out heat-shielding. America still wants to be doing stuff in space, but it doesn’t really know why; the narrative has collapsed, and that’s why there’s no money for it.

Meanwhile, out in the BRIC, growing economies are looking for trophies, boasting rights and… well, new frontiers. The torch wasn’t passed; it’s been snatched by the trailing pack, and it’ll be interesting to see what they do with it. I suspect it’ll turn out that pioneer bravery and Competent Persons will have their own renaissance, and turn out not to be something exclusively American in character after all… but ambition always comes at a price.

There’ll be more stories to tell about space, I feel sure. But I’ll bet my boots that an increasing proportion of ’em won’t be written in English. 🙂

 

A Brief History of the Corporation: 1600 to 2100

This is a rather excellent essay, and you should go and read it. With all the normal I-am-not-an-economist caveats, Venkatesh Rao’s reading of post-Enlightenment history in terms of the rise and fall of the concept of the corporation is powerful stuff, and – unlike a lot of economics material I’ve read recently – it actually manages to look beyond tomorrow afternoon, albeit with a certain amount of shrugging (I’d much rather have someone admit they’re not sure how something’s going to pan out than dress up a guess as a given). It clocks in at over 7k words (!) so you’ll wanna set aside some time to read the whole thing; I suspect that even those among you who’ll disagree with some of Rao’s mappings will still find plenty of stuff to think about.

But hey, this is Futurismic, and we’re all about the hand-picked excerpts, so here’s a teaser that makes it clear that not only are today’s rapacious and out of control corporations nothing new, but that they’re also pussycats compared to their historical forebears:

The [East India Company] was the original too-big-to-fail corporation. The EIC was the beneficiary of the original Big Bailout. Before there was TARP, there was the Tea Act of 1773 and the Pitt India Act of 1783. The former was a failed attempt to rein in the EIC, which cost Britain the American Colonies.  The latter created the British Raj as Britain doubled down in the east to recover from its losses in the west. An invisible thread connects the histories of India and America at this point. Lord Cornwallis, the loser at the Siege of Yorktown in 1781 during the revolutionary war, became the second Governor General of India in 1786.

But these events were set in motion over 30 years earlier, in the 1750s. There was no need for backroom subterfuge.  It was all out in the open because the corporation was such a new beast, nobody really understood the dangers it represented. The EIC maintained an army. Its merchant ships often carried vastly more firepower than the naval ships of lesser nations. Its officers were not only not prevented from making money on the side, private trade was actually a perk of employment (it was exactly this perk that allowed William Jardine to start a rival business that took over the China trade in the EIC’s old age).  And finally — the cherry on the sundae — there was nothing preventing its officers like Clive from simultaneously holding political appointments that legitimized conflicts of interest. If you thought it was bad enough that Dick Cheney used to work for Halliburton before he took office, imagine if he’d worked there while in office, with legitimate authority to use his government power to favor his corporate employer and make as much money on the side as he wanted, and call in the Army and Navy to enforce his will. That picture gives you an idea of the position Robert Clive found himself in, in 1757.

He made out like a bandit. A full 150 years before American corporate barons earned the appellation “robber.”

Rao’s thesis here is that the corporation – in terms of its power and influence – is actually entering its twilight years as we hit the limits of certain forms of economic growth; as such, I guess we have to view the recent banking crises as one last desperate – and rather savage – grasp for power and influence over a changing world. I certainly hope he’s right… though his concept of “Coasean growth” probably won’t be as appealing a replacement for the status quo for others as it is for me.

The end of the job

Via Gerd Leonhard, here’s Glen Hiemstra suggesting that the current unemployment trough in the US (and, by extension, much of the rest of the West) is here to stay. Grim news on the surface, but Hiemstra’s theory – which I have a certain degree of sympathy for – is that it’s the post-industrialisation notion of “a job” that’s had its day, and that employment will become a far more fluid thing, with everyone becoming their own freelance “company of one”.

In the real future you will be working at a stint rather than a job. To work at a stint is to become part of a project team for 18 months, followed by joining three friends doing a start-up business that folds after two years, after which you sign on with a multinational which disappears in a merger…and the beat goes on. This requires a reinvention of the social contract around security and benefits.

Since you have become a stint worker, you will have shifted from being an employee to being a free agent. This will not be new, as increasing numbers of us are already free agents in 2011, but for most of us it requires a change in perspective. The biggest change involves learning how to think of your self as a company of one.

The most profound shift may be the disappearance of employers as we have known them, as they are replaced by amoeba-like networks that come together to complete certain projects and tasks. Consider a feature film production. The project is conceived, some key people flesh out a proposal, funding is arranged, a global network of talent is hired, they work together for weeks or months, and then disband, never to work in that exact combination again.

Obviously there will remain many exceptions to this enterprise model. The corner grocer, the local coffee house, the dry-cleaning store down the street will likely continue to be small and stable, with fixed employees, though even these employees will likely be free agents working on a stint.

It’s not that huge a leap, really; my own employment prospects for the next year or two are already looking to be very similar to Hiemstra’s stint model, as are the careers of many of the other knowledge workers and artists I know. The job for life – which was still the assumed end-point of the education system in the UK when I was spat out of it in the mid-nineties – was already pretty much dead; even the folk I know in ‘proper’ jobs rarely work for the same company for more than a few years at a stretch. Work has become nomadic, even if not necessarily in geographical terms.

Hiemstra’s vision has some worrying gaps, though, the most obvious of which being the fate of the working class, already reeling from the massive downscaling of manufacturing jobs in the Countries Formerly Known As The First World. Will they shift to the service industries (retail, catering, logistics and goods-fulfillment gruntwork etc.), or maybe self-train themselves into the knowledge-work economy? In a theoretically ideal free employment market (which would have to involve nigh-universal freedom of movement across national borders, for a start), Hiemstra’s ‘stints’ would adjust in workload and number until everyone had a chunk of work to do, with the wage spread shrinking and evening out in response to market forces. However, the arrival of such an employment market is by no means a given, and quite possibly a naive thing to even hope for, let alone predict.

Furthermore, Hiemstra’s model leaves plenty of space at the top for the global super-rich to maintain their current status at the top of a tall and ever-narrowing pyramid of wealth… and while that might be sustainable economically, I’m not sure that the social fabric will be able to take the strain for very much longer. (After all, things are pretty tense already, aren’t they?)

I’m still far from being any sort of expert in economics, but the more I think about this situation the more I conclude that the biggest barriers to a fairer and freer employment market world-wide are the nation-state and the fiat currency… and as they’re also the two things that best serve the folk already at the top of the pyramid, there’s going to be considerable resistance to their dismantling, to the extent that no one with the power to attempt such will be interested in doing so. (No point shitting in your own penthouse, after all.) So while Hiemstra’s atomisation of jobs into stints looks pretty inevitable, I’m left wondering whether bottom-upward construction of new subeconomies based on mutual exchange is the only way for the workers of the world to free themselves from the velvet-gloved tyranny of corporatist capital. After all, if we don’t do it ourselves, who will?