Platform Capitalism
What unites Google and Facebook, Apple and Microsoft, Siemens and GE, Uber and Airbnb? Across a wide range of sectors, these firms are transforming themselves into platforms: businesses that provide the hardware and software foundation for others to operate on. This transformation signals a major shift in how capitalist firms operate and how they interact with the rest of the economy: the emergence of 'platform capitalism'. This book critically examines these new business forms, tracing their genesis from the long downturn of the 1970s to the boom and bust of the 1990s and the aftershocks of the 2008 crisis. It shows how the fundamental foundations of the economy are rapidly being carved up among a small number of monopolistic platforms, and how the platform introduces new tendencies within capitalism that pose significant challenges to any vision of a post-capitalist future. This book will be essential reading for anyone who wants to understand how the most powerful tech companies of our time are transforming the global economy."
Stats for nerds
4recommend
10mentions
7people
2018–2025years
60% recommend40% neutral
Mentions per year
What Hacker News says
- Sadly, and fortunately, there is no such thing as "avoiding centralization", the evidence is overwhelming:
== Politics & Sociology (power concentrates in organizations)
- Robert Michels, Political Parties (1911) origin of the "iron law of oligarchy": even democratic groups tend to end up run by a few: https://en.wikipedia.org/wiki/Iron_law_of_oligarchy
- Jo Freeman, "The Tyranny of Structurelessness" (1970/72): leaderless groups develop informal, unaccountable elites unless they make structure explicit: https://en.wikipedia.org/wiki/The_Tyranny_of_Structurelessne...
- Max Weber, bureaucracy & rational-legal authority: why modern societies gravitate to rule-bound, hierarchical administration: https://en.wikipedia.org/wiki/Rational-legal_authority
- James G. March & Herbert A. Simon, Organizations (1958): classics on bounded rationality and why attention/decision bottlenecks yield hierarchy: https://www.amazon.se/-/en/James-G-March/dp/0471567930
== Economics & Political Economy (why markets/platforms centralize)
- Ronald Coase, "The Nature of the Firm" (1937): firms exist (and grow) when internal coordination is cheaper than market exchange: https://onlinelibrary.wiley.com/doi/10.1111/j.1468-0335.1937...
- Oliver Williamson, Markets and Hierarchies (1975): transaction-cost economics: asset specificity & opportunism push activity into hierarchies: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=1496220
- W. Brian Arthur, "Increasing Returns and Lock-In" (1989): small early advantages + network effects => path-dependent monopolies: https://www.jstor.org/stable/2234208
- Katz & Shapiro, network effects (1985/1994): compatibility and standards help explain winner-take-most dynamics: https://faculty.haas.berkeley.edu/shapiro/systems.pdf
- Thomas Piketty, Capital in the Twenty-First Century (2014): when r > g, wealth concentrates; proposes progressive wealth taxation https://en.wikipedia.org/wiki/Capital_in_the_Twenty-First_Ce...
== Networks, Complexity & Information (why hubs and hierarchies emerge)
Albert-László Barabási, Linked (2002): preferential attachment makes networks develop hubs (central nodes) http://networksciencebook.com/chapter/5
Herbert A. Simon, "The Architecture of Complexity" (1962): complex systems often become hierarchical because modular hierarchies are easier to evolve and manage https://faculty.sites.iastate.edu/tesfatsi/archive/tesfatsi/...
W. Ross Ashby, "Law of Requisite Variety" (1956): controllers need at least as much "variety" as the environment and it often pushes toward central coordinating mechanisms (or many distributed ones with enough capacity) http://pcp.vub.ac.be/books/AshbyReqVar.pdf
Gilbert & Lynch, proof of the CAP theorem (2002): in distributed computing you can’t have perfect consistency + availability under network partitions and real systems centralize/compromise to cope: https://groups.csail.mit.edu/tds/papers/Gilbert/Brewer2.pdf
Robert K. Merton, "The Matthew Effect" (1968): cumulative advantage: success attracts more success, reinforcing centralization of recognition/resources https://garfield.library.upenn.edu/merton/matthew1.pdf
== State power, legibility & infrastructure (why governments centralize)
James C. Scott, Seeing Like a State (1998): states seek legibility and large projects favor central plans and standardized populations/landscapes https://en.wikipedia.org/wiki/Seeing_Like_a_State (literally anything by Jim Scott -RIP- will be useful)
Tim Wu, The Master Switch (2010): communications industries cycle from openness to centralized "information empires" https://www.amazon.com/Master-Switch-Rise-Information-Empire...
== Technology & platforms (contemporary centralization)
Nick Srnicek, Platform Capitalism (2017): explains how platform business models + data/network effects produce concentration https://www.wiley.com/en-us/Platform+Capitalism-p-9781509504...
== When decentralization can work
Elinor Ostrom, Governing the Commons (1990): shows conditions (clear rules, monitoring, graduated sanctions, polycentric governance) under which decentralized, federated management of shared resources succeed https://www.cambridge.org/core/books/governing-the-commons/A...
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the literature making a counterpoint is abundant / overwhelming but that feels bleak considering when reading these works, systems thinking )the basis for "la technique") favors centralization
- The Cybernetic Hypothesis https://mitpress.mit.edu/9781635900927/the-cybernetic-hypoth...
The Stack: On Software and Sovereignty https://direct.mit.edu/books/monograph/3504/The-StackOn-Soft...
The Age of Surveillance Capitalism: The Fight for a Human Future at the New Frontier of Power https://www.hbs.edu/faculty/Pages/item.aspx?num=56791
Platform Capitalism https://www.wiley.com/en-in/Platform+Capitalism-p-9781509504...
- A good book on why those capitalist Platforms are hiring and investing a lot on becoming "the most perfect platform" is Nick Srnicek's Pltaform Capitalism ( https://www.wiley.com/en-us/Platform+Capitalism-p-9781509504... )
Most of their profitability comes from becoming a de facto monopoly / middle-man so they will attempt to gain as much market share as aggressively as possible. (Including sacrificing present profitability, giving away money for free rides/things, etc)
It is not a technical necessity but an economic venture capital necessity.
- There are several advocacy groups that could help out:
https://ioo.coop (Internet of Ownership Coop) (Edit: currently down, a snapshot is available at https://web.archive.org/web/20211207224925/http://ioo.coop/ )
https://platform.coop (Platform Cooperativism site)
A good short read on the topic could be Nick Srnicek's Platform Capitalism; it covers concisely a lot of the economics involved.
- FWIW Mandie, here's my list of modern pop tech critique, all topics that DV touches at least tangentially. Far more than 40 days and nights worth of reading
Shoshana Zuboff Big Other (surveillance capitalism)
Virginia Eubanks Automating Inequality
Sophie Brickman Baby Unplugged
Cory Doctorow Radicalized
Mike Monteiro Ruined by Design
Nick Srnicek Platform Capitalism
Paul Kingsnorth Life versus the machine
Heather Burns Understanding Privacy
Roger McNamee Zucked: Waking Up to the Facebook Catastrophe
Siva Vaidhyanathan Antisocial Media: How Facebook Disconnects Us
Catherine Price How to Break Up With Your Phone
Thomas Kersting Disconnected: Protect Your Kids Against Device Dependency
Nicholas Kardaras Glow Kids
Zeynep Tufekci Twitter and Tear Gas
Lelia Green Technoculture
Douglas Rushkoff Team Human
Jaron Lanier Ten Arguments For Deleting Your Social Media
Carissa Véliz Privacy is Power: Why You Should Take Back Control
Xiaowei Wang Blockchain Chicken Farm
Jenny Oddell How to Do Nothing: Resisting the Attention Economy
Wendy Liu Abolish SIlicon Valley
Jonathan Taplin Move Fast and Break Things
Andrew L. Shapiro The Control Revolution
Lawrence Lessig Code and Other Laws of Cyberspace
David Shenk Data Smog
Douglas Rushkoff Cyberia
Paulina Borsook Cyberselfish.
- > This is as good a place as any, do you guys have any readings on 'winner take all'-ification and/or how to reverse it?
Pop Culture Detective - Sociological Storytelling ( https://www.youtube.com/watch?v=Z1-vPQKwXbY )
Platform Capitalism by Nick Srnicek ( http://politybooks.com/bookdetail/?isbn=9781509504862 )
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