In economics, a public good is a good that is both non-excludable and non-rivalrous. Use by one person neither prevents access by other people, nor does it reduce availability to others. Therefore, the good can be used simultaneously by more than one person. This is in contrast to a common good, such as wild fish stocks in the ocean, which is non-excludable but rivalrous to a certain degree. If too many fish were harvested, the stocks would deplete, limiting the access of fish for others. A public good must be valuable to more than one user, otherwise, its simultaneous availability to more than one person would be economically irrelevant.
Social software, also known as social apps or social platform includes communications and interactive tools that are often based on the Internet. Communication tools typically handle capturing, storing and presenting communication, usually written but increasingly including audio and video as well. Interactive tools handle mediated interactions between a pair or group of users. They focus on establishing and maintaining a connection among users, facilitating the mechanics of conversation and talk. Social software generally refers to software that makes collaborative behaviour, the organisation and moulding of communities, self-expression, social interaction and feedback possible for individuals. Another element of the existing definition of social software is that it allows for the structured mediation of opinion between people, in a centralized or self-regulating manner. The most improved area for social software is that Web 2.0 applications can all promote co-operation between people and the creation of online communities more than ever before. The opportunities offered by social software are instant connections and opportunities to learn. An additional defining feature of social software is that apart from interaction and collaboration, it aggregates the collective behaviour of its users, allowing not only crowds to learn from an individual but individuals to learn from the crowds as well. Hence, the interactions enabled by social software can be one-to-one, one-to-many, or many-to-many.
Mechanism design, sometimes called implementation theory or institutiondesign, is a branch of economics, social choice, and game theory that deals with designing game forms to implement a given social choice function. Because it starts with the end of the game and then works backwards to find a game that implements it, it is sometimes described as reverse game theory.
Paul Robert Milgrom is an American economist. He is the Shirley and Leonard Ely Professor of Humanities and Sciences at the Stanford University School of Humanities and Sciences, a position he has held since 1987. He is a professor in the Stanford School of Engineering as well and a Senior Fellow at the Stanford Institute for Economic Research. Milgrom is an expert in game theory, specifically auction theory and pricing strategies. He is the winner of the 2020 Nobel Memorial Prize in Economic Sciences, together with Robert B. Wilson, "for improvements to auction theory and inventions of new auction formats".
Information economics or the economics of information is the branch of microeconomics that studies how information and information systems affect an economy and economic decisions.
Social computing is an area of computer science that is concerned with the intersection of social behavior and computational systems. It is based on creating or recreating social conventions and social contexts through the use of software and technology. Thus, blogs, email, instant messaging, social network services, wikis, social bookmarking and other instances of what is often called social software illustrate ideas from social computing.
User-generated content (UGC), alternatively known as user-created content (UCC), emerged from the rise of intelligent web services which allow everyday users to create content, such as images, videos, audio, text, testimonials, and software and interact with other users. Online content aggregation platforms such as social media, discussion forums and wikis by their interactive and social nature, no longer produce multimedia content but provide tools to produce, collaborate, and share a variety of content, which can affect the attitudes and behaviors of the audience in various aspects. This transforms the role of consumers from passive spectators to active participants.
A reputation system is a program or algorithm that allow users of an online community to rate each other in order to build trust through reputation. Some common uses of these systems can be found on E-commerce websites such as eBay, Amazon.com, and Etsy as well as online advice communities such as Stack Exchange. These reputation systems represent a significant trend in "decision support for Internet mediated service provisions". With the popularity of online communities for shopping, advice, and exchange of other important information, reputation systems are becoming vitally important to the online experience. The idea of reputation systems is that even if the consumer can't physically try a product or service, or see the person providing information, that they can be confident in the outcome of the exchange through trust built by recommender systems.
A double auction is a process of buying and selling goods with multiple sellers and multiple buyers. Potential buyers submit their bids and potential sellers submit their ask prices to the market institution, and then the market institution chooses some price p that clears the market: all the sellers who asked less than p sell and all buyers who bid more than p buy at this price p. Buyers and sellers that bid or ask for exactly p are also included. A common example of a double auction is stock exchange.
In game theory and economics, a mechanism is called incentive-compatible (IC) if every participant can achieve their own best outcome by reporting their true preferences. For example, there is incentive compatibility if high-risk clients are better off in identifying themselves as high-risk to insurance firms, who only sell discounted insurance to high-risk clients. Likewise, they would be worse off if they pretend to be low-risk. Low-risk clients who pretend to be high-risk would also be worse off. The concept is attributed to the Russian-born American economist Leonid Hurwicz.
Auction theory is a branch of applied economics that deals with how bidders act in auctions and researches how the features of auctions incentivise predictable outcomes. Auction theory is a tool used to inform the design of real-world auctions. Sellers use auction theory to raise higher revenues while allowing buyers to procure at a lower cost. The confluence of the price between the buyer and seller is an economic equilibrium. Auction theorists design rules for auctions to address issues that can lead to market failure. The design of these rulesets encourages optimal bidding strategies in a variety of informational settings. The 2020 Nobel Prize for Economics was awarded to Paul R. Milgrom and Robert B. Wilson "for improvements to auction theory and inventions of new auction formats."
The revelation principle is a fundamental result in mechanism design, social choice theory, and game theory which shows it is always possible to design a strategy-resistant implementation of a social decision-making mechanism. It can be seen as a kind of mirror image to Gibbard's theorem. The revelation principle says that if a social choice function can be implemented with some non-honest mechanism—one where players have an incentive to lie—the same function can be implemented by an incentive-compatible (honesty-promoting) mechanism with the same equilibrium outcome (payoffs).
Implementation theory is an area of research in game theory concerned with whether a class of mechanisms can be designed whose equilibrium outcomes implement a given set of normative goals or welfare criteria.
An incentive program is a formal scheme used to promote or encourage specific actions or behavior by a specific group of people during a defined period of time. Incentive programs are particularly used in business management to motivate employees and in sales to attract and retain customers. Scientific literature also refers to this concept as pay for performance.
Algorithmic game theory (AGT) is an area in the intersection of game theory and computer science, with the objective of understanding and design of algorithms in strategic environments.
Online participation is used to describe the interaction between users and online communities on the web. Online communities often involve members to provide content to the website or contribute in some way. Examples of such include wikis, blogs, online multiplayer games, and other types of social platforms. Online participation is currently a heavily researched field. It provides insight into fields such as web design, online marketing, crowdsourcing, and many areas of psychology. Some subcategories that fall under online participation are: commitment to online communities, coordination and interaction, and member recruitment.
A reverse auction is a type of auction in which the traditional roles of buyer and seller are reversed. Thus, there is one buyer and many potential sellers. In an ordinary auction also known as a forward auction, buyers compete to obtain goods or services by offering increasingly higher prices. In contrast, in a reverse auction, the sellers compete to obtain business from the buyer and prices will typically decrease as the sellers underbid each other.
Crowdsourcing software development or software crowdsourcing is an emerging area of software engineering. It is an open call for participation in any task of software development, including documentation, design, coding and testing. These tasks are normally conducted by either members of a software enterprise or people contracted by the enterprise. But in software crowdsourcing, all the tasks can be assigned to or are addressed by members of the general public. Individuals and teams may also participate in crowdsourcing contests.
The economics of digitization is the field of economics that studies how digitization, digitalisation and digital transformation affects markets and how digital data can be used to study economics. Digitization is the process by which technology lowers the costs of storing, sharing, and analyzing data. This has changed how consumers behave, how industrial activity is organized, and how governments operate. The economics of digitization exists as a distinct field of economics for three reasons: it studies a world that is digital, exponential and combinatorial. First, new economic models are needed because digital goods have very low or even zero marginal costs unlike most traditional goods, thus many traditional assumptions no longer hold in a digitized world. Second, the rate of improvement of computers, networks and other engines of digitization, is exponential, as reflected by Moore's Law. Third, digital goods can easily be combined and recombined, increasing their value not only via networks and platforms, but also novel combinations. Each of these effects is important individually, but together they have synergies and constitute a distinct economic landscape.
A sequential auction is an auction in which several items are sold, one after the other, to the same group of potential buyers. In a sequential first-price auction (SAFP), each individual item is sold using a first price auction, while in a sequential second-price auction (SASP), each individual item is sold using a second price auction.
