The Internet of Personalised Things. Iot-Powered Consumer Manipulation As an Unfair Commercial Practice Dr Guido Noto La Diega*†

Total Page:16

File Type:pdf, Size:1020Kb

The Internet of Personalised Things. Iot-Powered Consumer Manipulation As an Unfair Commercial Practice Dr Guido Noto La Diega*† The Internet of Personalised Things. IoT-Powered Consumer Manipulation as an Unfair Commercial Practice Dr Guido Noto La Diega*† Faculty of Arts and Humanities, University of Stirling, United Kingdom *Author email: [email protected] Abstract Personalisation is one of the key befits of the Internet of Things (IoT). IoT traders can combine data from multiple sources and access consumers’ most private spaces. At the same time, these traders retain control over their smart devices (‘Things’) throughout their lifecycles. Thanks to this combination of deep knowledge of the consumer and control over the Thing, IoT traders can personalise products, services, prices, and even the terms of service that regulation the business- to-consumer relationship. The problem is that personalisation can lead to consumer manipulation and even discrimination – such detrimental effects can be referred to as the ‘Internet of Personalised Things’. Situational data and information about consumers’ biases and vulnerabilities allow IoT traders to influence consumers’ decision-making in surreptitious ways. This can go from instilling the desire to purchase useless or even dangerous Things, to the exclusion of BAME people from certain job ads, through to electoral manipulation. This paper critically assesses whether unfair trading laws – and in particular the Unfair Commercial Practices Directive as amended in 2020 – are fit for purpose and can provide a successful strategy to re-empower consumers, thus re-building trust in the IoT. It is suggested that, despite some shortcomings, this regime can be invoked by consumer to counter IoT-powered manipulation, especially as the Directive provides special protections for vulnerable consumers and against traders’ undue influence impairing consumer freedom of choice. The Directive does have some limitations but this should not come as a surprise. Being a neoliberal instrument aimed at pursuing a perfectly competitive single market, it cannot provide an entirely satisfactory response to an issue that capitalism itself created, namely the problem of manipulated needs as discovered by Marx. Table of contents 1. Introduction......................................................................................................................................... 2 2. The IoT today: definitions and core features ...................................................................................... 3 3. Consumer benefits in the IoT ............................................................................................................ 14 4. The risks for the ‘smart’ consumer ................................................................................................... 15 5. Can we trust the Internet of Personalised Things? ........................................................................... 17 5.1. IoT-powered consumer manipulation as an unfair commercial practice .................................. 22 5.1.1. Unfair commercial practices that are contrary to the requirements of professional diligence. Is the IoT making us vulnerable? .................................................................................................. 27 5.1.2. Misleading actions and confusing practices ....................................................................... 32 5.1.3. Misleading omissions and the limitations of the communication medium .......................... 36 5.1.4. Aggressive commercial practices. IoT traders’ undue influence over consumers’ freedom of choice. ........................................................................................................................................... 41 5.1.5. Commercial practices that are unfair in all circumstances: the black list ......................... 46 5.2. The limitations and the potential of unfair trading law to counter the Internet of Personalised Things ................................................................................................................................................ 49 6. Conclusion. Or of How Neoliberal Laws Address the Neoliberal ‘Manipulation of Needs’ ............ 53 † Associate Professor of Intellectual Property and Privacy Law (University of Stirling); Fellow (Nexa Center for Internet and Society); Visiting Professor (Università degli Studi di Macerata); Researcher (CRISP – Centre for Research into Information, Surveillance & Privacy). 1 1. Introduction ‘We seek to be Earth’s most customer-centric company.’1 In Amazon’s commitment, it is possible to find one of the key benefits of the Internet of Things (IoT): personalisation. IoT traders can combine data from multiple sources and access consumers’ most private spaces. At the same time, these traders retain control over their smart devices (‘Things’) throughout their lifecycles. Thanks to this combination of deep knowledge of the consumer and control over the Thing, IoT traders can personalise products, services, prices, and even the terms of service that regulation the business-to-consumer relationship. The problem is that personalisation can lead to consumer manipulation and even discrimination. Situational data and information about consumers’ biases and vulnerabilities allow IoT traders to influence consumers’ decision- making in surreptitious ways. This can go from instilling the desire to purchase useless or even dangerous Things, to the exclusion of BAME people from certain job ads, through to electoral manipulation.2 The negative aspects of IoT-powered consumer manipulation – the Internet of Personalised Things – is the focus of this paper. First, the key IoT-related concepts will be introduced and the main benefits and consumer issues in the IoT. The paper will then inquire whether unfair trading laws – and in particular the Unfair Commercial Practices Directive as amended in 2020 – are fit for the IoT and can provide a successful strategy to re-empower consumers and re-build trust in the IoT. This doctrinal research takes an EU law perspective and it refers to English law to the limited extent to which national implementations need to be considered. The reason for this is that, despite leaving the EU, the UK has an incentive to keep their laws consistent with EU 1 Amazon.com, Inc., ‘US Securities and Exchange Commission, Form 10-K No 000-22513 Annual Report for the Fiscal Year Ended on 31 December 2019’ 42 <https://www.sec.gov/ix?doc=/Archives/edgar/data/1018724/000101872420000004/amzn-20191231x10k.htm> accessed 9 April 2020. 2 See e.g. Scott Shane and Sheera Frenkel, ‘Russian 2016 Influence Operation Targeted African-Americans on Social Media’ (The New York Times, 17 December 2018) <https://www.nytimes.com/2018/12/17/us/politics/russia-2016-influence-campaign.html> accessed 11 May 2020. 2 standards.3 However, Brexit may be an opportunity to take a different course if the acquis does not provide a solution that maximises consumer wellbeing while fostering innovation.4 2. The IoT today: definitions and core features The idea of the ‘Internet of Things’ can be traced back to 1926, when Nikola Tesla imagined that devices simpler and more mobile than the traditional telephone would convert the Earth into a brain.5 One needs to wait until the Seventies for the first Thing to be developed; it was a coke vending machine at the Carnegie Mellon Computer Science Department that thanks to microswitches enabled users to remotely double-check whether the machine was empty or full.6 Flash forward thirty years, Kevin Ashton coined the phrase ‘Internet of Things’ in a 2009 presentation for Procter & Gamble where he linked the use of radio-frequency identification (RFID) in that company’s supply chain and the internet, as a new, more reliable, way for computers to collect data about the physical world.7 Despite a not-so-recent history, there is no single commonly accepted definition of the IoT.8 In the proliferation of definitory attempts, some approaches are becoming increasingly common.9 A first authoritative definition was presented by the European Commission that in its 2009 IoT ‘action plan’ for Europe.10 The latter considered the IoT as ‘a network of 3 European Union (Withdrawal) Act 2018, ss 2-3, respectively saving EU-derived domestic legislation and incorporating direct EU legislation. 4 See Tom Verdonk, ‘The Regulation of Unfair Trading Practices after Brexit’ (LSE Blog, 11 October 2018) <https://blogs.lse.ac.uk/brexit/2018/10/11/the-regulation-of-unfair-trading-practices-after-brexit/> accessed 11 May 2020. 5 In 1926, in an interview to Collier’s – magazine that pioneered ‘muckraking’ journalism – the Serbian-American inventor predicted that ‘(w)hen wireless is perfectly applied the whole earth will be converted into a huge brain, which in fact it is, all things being particles of a real and rhythmic whole. We shall be able to communicate with one another instantly, irrespective of distance. Not only this, but through television and telephony we shall see and hear one another as perfectly as though we were face to face, despite intervening distances of thousands of miles; and the instruments through which we shall be able to do his will be amazingly simple compared with our present telephone. A man will be able to carry one in his vest pocket’ (). 6 Jay Patel, ‘The Timeline of Things’ (2015) 22 XRDS: Crossroads, The ACM Magazine for Students 13.). Others claim that the first Thing was a 1991 camera-equipped coffee pot at the Trojan Lab at Cambridge University (Paul Ford, ‘It’s All Connected’ [2013] United Hemispheres., as cited by Keith Marzullo, in Federal
Recommended publications
  • Bargaining with Arrival of New Traders∗
    Bargaining with Arrival of New Traders∗ William Fuchs† Andrzej Skrzypacz‡ May 14, 2008 Abstract We study a general model of dynamic bargaining between a seller and a privately informed buyer, with arrival of exogenous events. Events can represent arrival of competing buyers (or sellers) or release of information. We characterize the unique limit of stationary equilibria of these games as the time between offers goes to zero. The possibility of arrivals leads to new equilibrium dynamics. First, the no-delay part of the Coase conjecture no longer holds: even in the limit, there is considerable delay of trade in equilibrium and the seller slowly screens out buyers with higher valuations. Second, the inability to commit to future prices (and hence the Coasian forces) drive the seller payoffs down to his outside option. The limit of equilibria is very tractable, allowing us to establish many comparative statics and utilize the model to answer many applied questions. For example, we show applications in which when buyer valuations fall, average transaction prices drop and the time on the market gets longer. Moreover, for high enough arrival rates, the division of surplus and equilibrium dynamics are driven more by the relative competition from new traders than on the relative discount factors. Finally, even when multiple buyers can arrive, the expected time to trade is a non-monotonic function of the arrival rate. In bargaining theory (and practice) outside options play an important role. Often, an important outside option is to wait for new developments. Maybe another agent will show up and offer better terms of trade, maybe new information will arrive reducing the information asymmetry, etc.
    [Show full text]
  • 25TH ANNUAL CANADIAN SECURITY TRADERS CONFERENCE Hilton Quebec, QC August 16-19, 2018 TORONTO STOCK EXCHANGE Canada’S Market Leader
    25TH ANNUAL CANADIAN SECURITY TRADERS CONFERENCE Hilton Quebec, QC August 16-19, 2018 TORONTO STOCK EXCHANGE Canada’s Market Leader 95% 2.5X HIGHEST time at NBBO* average size average trade at NBBO vs. size among nearest protected competitor* markets* tmx.com *Approximate numbers based on quoting and trading in S&P/TSX Composite Stock over Q2 2018 during standard continuous trading hours. Underlying data source: TMX Analytics. ©2018 TSX Inc. All rights reserved. The information in this ad is provided for informational purposes only. This ad, and certain of the information contained in this ad, is TSX Inc.’s proprietary information. Neither TMX Group Limited nor any of its affiliates represents, warrants or guarantees the completeness or accuracy of the information contained in this ad and they are not responsible for any errors or omissions in or your use of, or reliance on, the information. “S&P” is a trademark owned by Standard & Poor’s Financial Services LLC, and “TSX” is a trademark owned by TSX Inc. TMX, the TMX design, TMX Group, Toronto Stock Exchange, and TSX are trademarks of TSX Inc. CANADIAN SECURITY TRADERS ASSOCIATION, INC. P.O. Box 3, 31 Adelaide Street East, Toronto, Ontario M5C 2H8 August 16th, 2018 On behalf of the Canadian Security Traders Association, Inc. (CSTA) and our affiliate organizations, I would like to welcome you to our 25th annual trading conference in Quebec City, Canada. The goal of this year’s conference is to bring our trading community together to educate, network and hopefully have a little fun! John Ruffolo, CEO of OMERS Ventures will open the event Thursday evening followed by everyone’s favourite Cocktails and Chords! Over the next two days you will hear from a diverse lineup of industry leaders including Kevin Gopaul, Global Head of ETFs & CIO BMO Global Asset Mgmt., Maureen Jensen, Chair & CEO Ontario Securities Commission, Kevan Cowan, CEO Capital Markets Regulatory Authority Implementation Organization, Kevin Sampson, President of Equity Trading TMX Group, Dr.
    [Show full text]
  • New Original Web Series CHATEAU LAURIER Gains 3 Million Views and 65,000 Followers in 2 Months
    New Original Web Series CHATEAU LAURIER gains 3 million views and 65,000 followers in 2 months Stellar cast features Fiona Reid, Kate Ross, Luke Humphrey and the late Bruce Gray May 9, 2018 (Toronto) – The first season of the newly launched web series CHATEAU LAURIER has gained nearly 3 million views and 65,000 followers in less than 2 months, it was announced today by producer/director, James Stewart. Three episodes have rolled out on Facebook thus far, generating an average of nearly 1 million views per episode. In addition, it has been nominated for Outstanding Canadian Web Series at T.O. WEBFEST 2018, Canada's largest international Webfest. The charming web series consisting of 3 episodes of 3 minutes each features a stellar Canadian cast, including Fiona Reid (My Big Fat Greek Wedding), Kate Ross (Alias Grace), Luke Humphrey (Stratford’s Shakespeare in Love), and the late Bruce Gray (Traders) in his last role. Fans across the world—from Canada, the US, and UK—to the Philippines and Indonesia have fallen for CHATEAU LAURIER since the first season launched on March 13, 2018. Set in turn-of-the-century Ottawa's historic grand hotel on the eve of a young couple's arranged wedding, CHATEAU LAURIER offers a wry slice-of-life glimpse into romance in the early 1900s. Filmed in one day, on a low budget, the talent of the actors and the very high production value, stunning sets and lush costumes (with the Royal York standing in for the Chateau), make this series a standout in a burgeoning genre.
    [Show full text]
  • The March of the Robo-Traders Sep 15Th 2005 from the Economist Print Edition
    Economist.com http://www.economist.com/printedition/PrinterFriendly.cfm?story_i... REPORTS The march of the robo-traders Sep 15th 2005 From The Economist print edition Software: Programs that buy and sell shares are becoming ever more sophisticated. Might they replace human traders? IMAGINE the software equivalent of a golden goose: a program that continually produces money as its output. It sounds fanciful, but such software exists. Indeed, if you have a pension or endowment policy, or have money invested in share-based funds, the chances are that such a program—variously known as an “autonomous trading agent”, “algorithmic trading” system or simply as a “robo-trader”—has already been used to help your investments grow. Simple software-based traders have been around for many years, but they are now becoming far more sophisticated, and make trades worth tens of billions of dollars, euros and pounds every day. They are proving so successful that in the equity markets, where they are used to buy and sell shares, they already appear to be outperforming their human counterparts, and it now seems likely that their success will be repeated in foreign-exchange markets too. Proponents of robo-traders claim that, as well as making more money, they can also help to make markets more stable. And, of course, being made of software, they do not demand lunch breaks, holidays or bonuses. This has prompted an arms race as companies compete to develop the best sets of rules, or algorithms, to govern the behaviour of their robo-traders. “We live and die by how well they perform,” says Richard Balarkas, global head of advanced execution services at Credit Suisse First Boston, an investment bank.
    [Show full text]
  • Hos Ho in Heatre Orty
    WHO’S WHO IN THEATRE FORTY BOARD OF DIRECTORS Jim Jahant, Chairperson Lya Cordova-Latta Dr. Robert Karns Charles Glenn Myra Lurie Frederick G. Silny, Treasurer David Hunt Stafford, Secretary Gloria Stroock Bonnie Webb Marion Zola ARTISTIC COMMITTEE Gail Johnston • Jennifer Laks • Alison Blanchard Diana Angelina • John Wallace Combs • Leda Siskind ADMINISTRATIVE STAFF David Hunt Stafford . .Artistic/Managing Director Jennifer Parsons . .Bookkeeper Richard Hoyt Miller . .Database Manager Philip Sokoloff . .Director of Public Relations Jay Bell . .Reservationist Dean Wood . .Box Office Manager Susan Mermet . .Assistant Box Office Manager Larry Rubinstein . .Technology Guru PRODUCTION STAFF Artistic/Managing Director David Hunt Stafford Set Design Jeff G. Rack Costume Design Michèle Young Lighting Design Ric Zimmerman Sound Design Joseph “Sloe” Slawinski Photograp her Ed Kreiger Program Design Richard Hoyt Miller Publicity Philip Sokoloff Reservations & Information Jay Bell / 310-364-0535 This production is dedicated to the memory of DAVID COLEMAN THEATRE FORTY PRESENTS The 6th Production of the 2017-2018 Season BY A.A. MILNE DIRECTED BY JULES AARON PRODUCED BY DAVID HUNT STAFFORD Set Designer..............................................JEFF G. RACK Costume Designer................................MICHÈLE YOUNG Lighting Designer................................RIC ZIMMERMAN Sound Designer .................................GABRIEAL GRIEGO Stage Manager ................................BETSY PAULL-RICK Assistant Stage Manager ..................RICHARD
    [Show full text]
  • Farmers, Traders, and Processors: Estimating the Welfare Loss from Double Marginalization for the Indonesian Rubber Sector
    FARMERS, TRADERS, AND PROCESSORS: ESTIMATING THE WELFARE LOSS FROM DOUBLE MARGINALIZATION FOR THE INDONESIAN RUBBER SECTOR Thomas Kopp1 & Richard J. Sexton2 [email protected] 1The University of Göttingen, Germany 2University of California, Davis, USA 2019 Vortrag anlässlich der 59. Jahrestagung der GEWISOLA (Gesellschaft für Wirtschafts- und Sozialwissenschaften des Landbaues e.V.) „Landwirtschaft und ländliche Räume im gesellschaftlichen Wandel“ Braunschweig, 25. bis 27. September 2019 Copyright 2019 by Thomas Kopp and Richard J. Sexton. All rights reserved. Readers may make verbatim copies of this document for non-commercial purposes by any means, provided that this copyright notice appears on all such copies. Farmers, Traders, and Processors: Estimating the Welfare Loss from Double Marginalization for the Indonesian Rubber Sector Abstract Reducing buyer market power over farmers is a key strategy to improve rural livelihoods in emerging economies. This paper focuses on implications for farm income and market efficiency of failure of a supply chain to coordinate vertically to eliminate a second stage of buyer power in the vertical market chain – the so-called “double marginalization” problem. Our specific application is to the Indonesian rubber industry. In the Jambi province production is mainly in the hands of smallholder farmers, who sell via spot transactions to a network of traders who in turn sell in spot exchanges to rubber processors. Processing is highly concentrated, and concentration among traders is also quite high in localized procurement markets. Barriers to buyer coordination are largely absent, and evidence indicates that both traders and processors exercise oligopsony power, a classic problem of double marginalization. We estimate the extent of buyer market power in farmer-trader and trader-processor interactions and then explore the nature of this market failure and quantify the extent of welfare loss and redistribution of income among market participants.
    [Show full text]
  • Glued to the TV Distracted Noise Traders and Stock Market Liquidity
    Glued to the TV Distracted Noise Traders and Stock Market Liquidity JOEL PERESS and DANIEL SCHMIDT * ABSTRACT In this paper we study the impact of noise traders’ limited attention on financial markets. Specifically we exploit episodes of sensational news (exogenous to the market) that distract noise traders. We find that on “distraction days,” trading activity, liquidity, and volatility decrease, and prices reverse less among stocks owned predominantly by noise traders. These outcomes contrast sharply with those due to the inattention of informed speculators and market makers, and are consistent with noise traders mitigating adverse selection risk. We discuss the evolution of these outcomes over time and the role of technological changes. ________________ *Joel Peress is at INSEAD. Daniel Schmidt (Corresponding author) is at HEC Paris, 1 rue de la Liberation, 78350 Jouy-en-Josas, France. Email: [email protected]. We are grateful to David Strömberg for sharing detailed news pressure data, including headline information, and to Terry Odean for providing the discount brokerage data. We thank Thierry Foucault, Marcin Kacperczyk, Yigitcan Karabulut, Maria Kasch, Asaf Manela, Øyvind Norli, Paolo Pasquariello, Joshua Pollet (the AFA discussant), Jacob Sagi, Paolo Sodini, Avi Wohl, Bart Yueshen, and Roy Zuckerman for their valuable comments, as well as seminar/conference participants at the AFA, EFA, 7th Erasmus Liquidity Conference, ESSFM Gerzensee, 2015 European Conference on Household Finance, UC Berkeley, Coller School of Management (Tel Aviv University), Marshall School of Business, Frankfurt School of Management and Finance, Hebrew University, IDC Arison School of Business, Imperial College Business School, University of Lugano, University of Paris-Dauphine, and Warwick Business School.
    [Show full text]
  • Explorers, Traders & Immigrants
    Explorers, Traders Immigrants Tracking the Cultural and Social Impacts &of the Global Commodity Trade A Curriculum Unit for Grades 9 – 12 ii Explorers, Traders Immigrants Tracking the Cultural and Social Impacts &of the Global Commodity Trade Primary Researchers: Natalie Arsenault, Outreach Director Teresa Lozano Long Institute of Latin American Studies Christopher Rose, Assistant Director Center for Middle Eastern Studies Allegra Azulay, Outreach Coordinator Center for Russian, East European & Eurasian Studies Rachel Meyer, Outreach Coordinator South Asia Institute Hemispheres The International Outreach Consortium at the University of Texas at Austin http://www.utexas.edu/cola/orgs/hemispheres/ [email protected] iii Explorers, Traders & Immigrants: Tracking the Cultural and Social Impacts of the Global Commodity Trade Publication Date: October 2008 This unit contains copyrighted material, which remains the property of the individual copyright holders. Permission is granted to reproduce this unit for classroom use only. Please do not redistribute this unit without prior permission. For more information, please see: http://www.utexas.edu/cola/orgs/hemispheres/ iv Table of Contents Explorers, Traders & Immigrants: Tracking the Cultural and Social Impacts of the Global Commodity Trade Table of Contents Introduction . .vii Standards Alignment . ix National Geography Standards Alignment . .xi Blank World Map . .xiii Image Analysis Worksheet . .xv Caviar: From Elite Treat to Marketing Magic .................................. 1 Introduction . .2 Section 1: A Common Russian Delicacy . 3 Section 2: Crisis in the Caspian . .7 Section 3: The Rise and Fall of the Atlantic Sturgeon Trade . 14 Section 4: The Marketing and Politics of a Banned Luxury . 20 Graphic Organizer 1 . 25 Graphic Organizer 2 . 26 Chocolate: From New World Currency to Global Addiction ......................
    [Show full text]
  • My Top 5 Earnings Tactics for Options Traders... Including My #1 Options Strategy for Earnings Season
    MY TOP 5 EARNINGS TACTICS FOR OPTIONS TRADERS... INCLUDING MY #1 OPTIONS STRATEGY FOR EARNINGS SEASON Introduction Why trade around earnings? Any option buyer knows that the ultimate options purchase is one that moves sharply in the least amount of time possible in order to minimize time erosion in the option. Earnings provide opportunities for sharp price gaps, in some cases instantly or usually overnight. In this report, I will detail the times where I like to trade options in front of, as well as after, the earnings event. You want to make sure you line yourself up for the best opportunities for big moves but relative to the market's expectations. If the market already expects a big move, you have to be careful buying options and in this report, you will learn how opportunities exist for a rarely used options strategy when expectations for a big move get overdone. Overview of My Top 5 Tactics There are many potential strategies for earnings season and here are my top 5 favorite techniques to consider. I will overview each of these strategies in this report, and then share with you my #1 favorite earnings strategy to consistently profit from earnings reports over time. 1. Buy well in front of earnings, sell before the event 2. Know the stock's history of gaps, and find relatively cheap options to trade the average gap 3. Buy straddles or strangles to play a big move in either direction 4. Consider a time spread, where you sell relatively high implied volatility in short-term options right before earnings and then you buy more time relatively cheaply as a hedge 5.
    [Show full text]
  • Cereal Secrets: the World's Largest Grain Traders and Global Agriculture
    OXFAM RESEARCH REPORTS AUGUST 2012 CEREAL SECRETS The world's largest grain traders and global agriculture MS. SOPHIA MURPHY INDEPENDENT CONSULTANT AND SENIOR ADVISOR AT THE INSTITUTE FOR AGRICULTURE AND TRADE POLICY DR. DAVID BURCH HONORARY PROFESSOR SOCIOLOGY, THE UNIVERSITY OF QUEENSLAND DR. JENNIFER CLAPP PROFESSOR, ENVIRONMENT AND RESOURCE STUDIES AND INTERNATIONAL AFFAIRS, UNIVERSITY OF WATERLOO The four big commodity traders – Archer Daniels Midland (ADM), Bunge, Cargill and Louis Dreyfus, collectively referred to as ‘the ABCD companies’ – are dominant traders of grain globally and central to the modern agri-food system. This report considers the ABCDs in relation to several global issues pressing on agriculture: the ‘financialization’ of both commodity trade and agricultural production; the emergence of global competitors to the ABCDs, in particular from Asia; and some of the implications of large-scale industrial biofuels, a sector in which the ABCDs are closely involved. The report includes a discussion of how smallholders in developing countries are affected by these changes, and highlights some development policy implications, given the importance of the ABCD firms in shaping the world of food and agriculture. The report highlights the ways in which these four firms are decisive actors in the global restructuring of the overlapping food, feed, and fuel complexes that is now under way, and considers how the firms are evolving as they respond to and shape the new pressures and opportunities in the modern agri-food system. Oxfam Research Reports are written to share research results, to contribute to public debate and to invite feedback on development and humanitarian policy and practice.
    [Show full text]
  • Business Practices and Creed Among Petty Traders in Tanzania
    African Studies Quarterly | Volume 9, Issues 1 & 2 | Fall 2006 "Earning among Friends": Business Practices and Creed among Petty Traders in Tanzania SAYAKA OGAWA Abstract: This paper analyzes how petty street traders called Machinga have created unique credit transactions in response to the political and socio-economical transformation after the economic liberalization of Tanzania. The credit transaction described in this paper is called Mali Kauli and is conducted by middlemen and micro- scale retailers. In this paper, I will discuss how newly created urban social relationships and knowledge of urban life, both function to sustain this unstable credit transaction, which balances social norms with economic profit. In conclusion, I will insist that the norms of reciprocity are not incongruous with economic rationality. The flexible "moral economy" does not require a rigid community or set of conventional norms. It can take effect in fellowships in which people trick each other, yet at the same time build mutual trust. The Mali Kauli transaction is a creative practice of the Machinga. Introduction The economic liberalization of Tanzania since the mid-1980s has brought a rapid influx of imports to Tanzania. These imports, including second-hand clothes, have opened new economic opportunities for the urban poor and vitalized the small-scale commercial sector. Machinga are the street traders and hawkers selling these imported goods. The term Machinga is derived from the two English words: 'marching' and 'guys'.1 The numbers of Machinga are increasing at a rapid rate. For example, Ngware estimated their number in Dar es Salaam at 85,000 in 1995.2 Although no official figures are available for the present, one can assume that this number has increased several fold in the past ten years.
    [Show full text]
  • Building Intelligent Systems One E-Citizen at a Time
    TRENDS & CONTROVERSIES Building intelligent systems By Marti A. Hearst University of California, Berkeley one e-citizen at a time [email protected] For decades, the AI community attempted to build intelligent systems by writing software that mimics human thought processes. More recently, researchers have advocated solving com- plex problems by building networks of interacting autonomous agents. But some researchers are now proposing that the key to building intelligent systems is leveraging the power of individual human thought. The idea is that now that networked information systems are widely available, gaping hole in our individual memories. I they can be used to link together the mental efforts of individuals in innovative ways. am talking in general about speculative mar- In this installment of “Trends and Controversies,” we discuss two variations on this idea. kets, and in particular about decision mar- First, Robin Hanson describes his idea of decision markets, also known as idea futures, in which kets. Decision markets might allow us to matters of public debate are resolved via a mechanism like a commodities market. more accurately estimate the consequences This idea rests on the assumption that the answers to pressing social questions (such as, of important decisions, by helping us to bet- “Does violence in video games cause violence in children?”) are not generally agreed on be- ter share relevant information. cause those in the best position to know the answer can’t or won’t share this information. The Consider, for example, a clearly impor- proposed solution is to create a market in which getting the answer right or wrong has financial tant policy question such as, consequences.
    [Show full text]