Comments on: The Dark Side of Cooperation http://www.overcomingbias.com/2009/09/the-dark-side-of-cooperation.html Overcoming Bias is economist Robin Hanson’s blog, on honesty, signaling, disagreement, forecasting, and the far future. Sun, 12 Feb 2012 04:20:14 +0000 hourly 1 http://wordpress.org/?v=3.1.3 By: Linkpile http://www.overcomingbias.com/2009/09/the-dark-side-of-cooperation.html#comment-433160 Linkpile Mon, 21 Sep 2009 14:07:10 +0000 http://www.overcomingbias.com/?p=19742#comment-433160 [...] The Dark Side of Cooperation: “Pro-cooperation instincts rely on dangerous conformity.” Interesting point, although backed by bizarre example suggesting that in a disaster, food and water and other resources should be distributed on the basis of ability to pay. (The wording used is “the basis of who values them most,” but obviously everyone would value food and water close to equally in a disaster, but some would have more resources to expend obtaining it.) Still, as I say, the overall point is sort of interesting and worth a read. [...] [...] The Dark Side of Cooperation: “Pro-cooperation instincts rely on dangerous conformity.” Interesting point, although backed by bizarre example suggesting that in a disaster, food and water and other resources should be distributed on the basis of ability to pay. (The wording used is “the basis of who values them most,” but obviously everyone would value food and water close to equally in a disaster, but some would have more resources to expend obtaining it.) Still, as I say, the overall point is sort of interesting and worth a read. [...]

]]> By: 20090920 - Adam Crowe http://www.overcomingbias.com/2009/09/the-dark-side-of-cooperation.html#comment-433132 20090920 - Adam Crowe Mon, 21 Sep 2009 00:33:20 +0000 http://www.overcomingbias.com/?p=19742#comment-433132 [...] Overcoming Bias — The Dark Side of Cooperation  Nice reveal on populist/socialist/price-fixing tendencies during times of distress: '…pro-cooperation instincts rely on dangerous conformity. For example, in big disasters like hurricanes, certain goods like gas, wood, water, or food become especially valuable. While natural selfish reactions lead to higher prices for these key items, humans clearly evolved to see this behavior as uncooperative; we resist such price rises, and want to punish those who allow them. Perhaps this made sense for our distant ancestors, but today it is counter-productive. If these goods are not allocated by price, they will instead be allocated by standing in lines, personal connections, etc., processes that are consistently worse at giving goods to those who value them the most, and do worse at creating incentives to prepare for such scenarios. But even when some of us realize that disaster price rises are actually cooperative behavior, pro-”cooperation” instincts get in the way of acting on this insight.' commons cooperation prices socialism conformity groups psychology economics [...] [...] Overcoming Bias — The Dark Side of Cooperation  Nice reveal on populist/socialist/price-fixing tendencies during times of distress: '…pro-cooperation instincts rely on dangerous conformity. For example, in big disasters like hurricanes, certain goods like gas, wood, water, or food become especially valuable. While natural selfish reactions lead to higher prices for these key items, humans clearly evolved to see this behavior as uncooperative; we resist such price rises, and want to punish those who allow them. Perhaps this made sense for our distant ancestors, but today it is counter-productive. If these goods are not allocated by price, they will instead be allocated by standing in lines, personal connections, etc., processes that are consistently worse at giving goods to those who value them the most, and do worse at creating incentives to prepare for such scenarios. But even when some of us realize that disaster price rises are actually cooperative behavior, pro-”cooperation” instincts get in the way of acting on this insight.' commons cooperation prices socialism conformity groups psychology economics [...]

]]> By: Weekend Links - Maggie's Farm http://www.overcomingbias.com/2009/09/the-dark-side-of-cooperation.html#comment-433073 Weekend Links - Maggie's Farm Sat, 19 Sep 2009 19:25:17 +0000 http://www.overcomingbias.com/?p=19742#comment-433073 [...] The Dark side of cooperation [...] [...] The Dark side of cooperation [...]

]]> By: Michael F. Martin http://www.overcomingbias.com/2009/09/the-dark-side-of-cooperation.html#comment-433013 Michael F. Martin Fri, 18 Sep 2009 17:49:38 +0000 http://www.overcomingbias.com/?p=19742#comment-433013 <em>If these goods are not allocated by price, they will instead be allocated by standing in lines, personal connections, etc., processes that are consistently worse at giving goods to those who value them the most, and do worse at creating incentives to prepare for such scenarios.</em> This treats as discrete what is a continuous phenomenon. If allocations by price are made using a common currency, then the reciprocal ties between party and counter-party are minimized. But as we move to less and less common currencies -- from bartering to personal connections, or (finally) familial obligations -- the reciprocal ties are enhanced. Allocation of fungible resources may be most efficient through a common currency. But allocation of scarcer resources, or resources more subject to idiosyncratic valuations, may be more efficient through a currency that incorporates more interconnections between party and counterparty. If these goods are not allocated by price, they will instead be allocated by standing in lines, personal connections, etc., processes that are consistently worse at giving goods to those who value them the most, and do worse at creating incentives to prepare for such scenarios.

This treats as discrete what is a continuous phenomenon. If allocations by price are made using a common currency, then the reciprocal ties between party and counter-party are minimized. But as we move to less and less common currencies — from bartering to personal connections, or (finally) familial obligations — the reciprocal ties are enhanced. Allocation of fungible resources may be most efficient through a common currency. But allocation of scarcer resources, or resources more subject to idiosyncratic valuations, may be more efficient through a currency that incorporates more interconnections between party and counterparty.

]]> By: Sebastian Franck http://www.overcomingbias.com/2009/09/the-dark-side-of-cooperation.html#comment-433004 Sebastian Franck Fri, 18 Sep 2009 13:20:23 +0000 http://www.overcomingbias.com/?p=19742#comment-433004 Hmm, to me rules are not the same as cooperation. In fact, the workplaces you describe here are the exact opposite of cooperative environments, IMO. Rules are needed only where people have no other incentives to cooperate. I'm convinced there are other returns to "being in it together", e.g. social identiy, a sense of belonging and being needed, but also efficiencies that pertain to the entire organization, e.g. better quality controls through higher levels of trust, more efficient communication (transaction cost reduction), implicit knowledge embedded in the culture of the corporation. These are significant. I believe we are moving towards a lot more hybrid forms where the efficiencies of the firm co-exist with the freedoms, bonuses, risks and responsibilities of free agency. Hmm, to me rules are not the same as cooperation. In fact, the workplaces you describe here are the exact opposite of cooperative environments, IMO. Rules are needed only where people have no other incentives to cooperate.

I’m convinced there are other returns to “being in it together”, e.g. social identiy, a sense of belonging and being needed, but also efficiencies that pertain to the entire organization, e.g. better quality controls through higher levels of trust, more efficient communication (transaction cost reduction), implicit knowledge embedded in the culture of the corporation. These are significant.

I believe we are moving towards a lot more hybrid forms where the efficiencies of the firm co-exist with the freedoms, bonuses, risks and responsibilities of free agency.

]]> By: michael webster http://www.overcomingbias.com/2009/09/the-dark-side-of-cooperation.html#comment-432954 michael webster Thu, 17 Sep 2009 15:11:42 +0000 http://www.overcomingbias.com/?p=19742#comment-432954 You might be interested in this: http://www.mindhacks.com/blog/2009/09/mass_hysteria_craze.html You might be interested in this:

http://www.mindhacks.com/blog/2009/09/mass_hysteria_craze.html

]]> By: Price gouging and the “dark side of cooperation” « Knowledge Problem http://www.overcomingbias.com/2009/09/the-dark-side-of-cooperation.html#comment-432944 Price gouging and the “dark side of cooperation” « Knowledge Problem Thu, 17 Sep 2009 12:36:39 +0000 http://www.overcomingbias.com/?p=19742#comment-432944 [...] Overcoming Bias, Robin Hanson points out that the human instinct for cooperation has good and bad consequences.  A handful of recent articles in reaction to Frans de Waal’s new [...] [...] Overcoming Bias, Robin Hanson points out that the human instinct for cooperation has good and bad consequences.  A handful of recent articles in reaction to Frans de Waal’s new [...]

]]> By: The Institute http://www.overcomingbias.com/2009/09/the-dark-side-of-cooperation.html#comment-432943 The Institute Thu, 17 Sep 2009 12:25:05 +0000 http://www.overcomingbias.com/?p=19742#comment-432943 <strong>When Coorporation Goes Bad...</strong> This is from Economist Robin HansonThe unstated moral behind most media stories on our biological instincts to cooperate seems to be that we would do better to empower and emphasize these instincts. Such as, oh, taxing carbon, and shaming those...... When Coorporation Goes Bad…

This is from Economist Robin HansonThe unstated moral behind most media stories on our biological instincts to cooperate seems to be that we would do better to empower and emphasize these instincts. Such as, oh, taxing carbon, and shaming those……

]]> By: Michael Turner http://www.overcomingbias.com/2009/09/the-dark-side-of-cooperation.html#comment-432920 Michael Turner Thu, 17 Sep 2009 07:23:24 +0000 http://www.overcomingbias.com/?p=19742#comment-432920 "George Debreu"? I meant Gérard. What's happening with my brain these days? It's not good. :-( “George Debreu”? I meant Gérard. What’s happening with my brain these days? It’s not good. :-(

]]> By: Brian Hewes http://www.overcomingbias.com/2009/09/the-dark-side-of-cooperation.html#comment-432897 Brian Hewes Wed, 16 Sep 2009 20:29:00 +0000 http://www.overcomingbias.com/?p=19742#comment-432897 Ok that makes more sense, maybe I should read more carefully next time. I worked and lived in New Orleans after Katrina and many times I saw the negative effects of empowering and emphasizing the cooperation instinct. More often then not caused nothing to get repaired or sold. Ok that makes more sense, maybe I should read more carefully next time.
I worked and lived in New Orleans after Katrina and many times I saw the negative effects of empowering and emphasizing the cooperation instinct. More often then not caused nothing to get repaired or sold.

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