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'Networked minds' require fundamentally new kind of economics

'Networked minds' require fundamentally new kind of economics | Social Foraging | Scoop.it
In their computer simulations of human evolution, scientists have discovered the emergence of the “homo socialis” with “other-regarding” preferences.

Via Viktor Markowski
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Viktor Markowski's curator insight, March 25, 2013 3:49 PM

Economics has a beautiful body of theory. But does it describe real markets? Doubts have come up not only in the wake of the financial crisis, since financial crashes should not occur according to the then established theories. Since ages, economic theory is based on concepts such as efficient markets and the “homo economicus”, i.e. the assumption of competitively optimizing individuals and firms. It was believed that any behavior deviating from this would create disadvantages and, hence, be eliminated by natural selection. But experimental evidence from behavioral economics show that, on average, people behave more fairness-oriented and other-regarding than expected. A new theory by scientists from ETH Zurich now explains why. 

luiy's curator insight, March 25, 2013 5:33 PM

Evolution of “friendliness”


Prof. Dirk Helbing of ETH Zurich, who coordinated the study, adds: “Compared to conventional models for the evolution of social cooperation, we have distinguished between the actual behavior – cooperation or not – and an inherited character trait, describing the degree of other-regarding preferences, which we call the friendliness.” The actual behavior considers not only the own advantage (“payoff”), but also gives a weight to the payoff of the interaction partners depending on the individual friendliness. For the “homo economicus”, the weight is zero. The friendliness spreads from one generation to the next according to natural selection. This is merely based on the own payoff, but mutations happen.

For most parameter combinations, the model predicts the evolution of a payoff-maximizing “homo economicus” with selfish preferences, as assumed by a great share of the economic literature. Very surprisingly, however, biological selection may create a “homo socialis” with other-regarding preferences, namely if offsprings tend to stay close to their parents. In such a case, clusters of friendly people, who are “conditionally cooperative”, may evolve over time.

If an unconditionally cooperative individual is born by chance, it may be exploited by everyone and not leave any offspring. However, if born in a favorable, conditionally cooperative environment, it may trigger cascade-like transitions to cooperative behavior, such that other-regarding behavior pays off. Consequently, a “homo socialis” spreads.

 

 

Networked minds create a cooperative human species


“This has fundamental implications for the way, economic theories should look like,” underlines Professor Helbing. Most of today’s economic knowledge is for the “homo economicus”, but people wonder whether that theory really applies. A comparable body of work for the “homo socialis” still needs to be written.

While the “homo economicus” optimizes its utility independently, the “homo socialis” puts himself or herself into the shoes of others to consider their interests as well,” explains Grund, and Helbing adds: “This establishes something like “networked minds”. Everyone’s decisions depend on the preferences of others.” This becomes even more important in our networked world.

 

 

A participatory kind of economy


How will this change our economy? Today, many customers doubt that they get the best service by people who are driven by their own profits and bonuses. “Our theory predicts that the level of other-regarding preferences is distributed broadly, from selfish to altruistic. Academic education in economics has largely promoted the selfish type. Perhaps, our economic thinking needs to fundamentally change, and our economy should be run by different kinds of people,” suggests Grund. “The true capitalist has other-regarding preferences,” adds Helbing, “as the “homo socialis” earns much more payoff.” This is, because the “homo socialis” manages to overcome the downwards spiral that tends to drive the “homo economicus” towards tragedies of the commons. The breakdown of trust and cooperation in the financial markets back in 2008 might be seen as good example.

“Social media will promote a new kind of participatory economy, in which competition goes hand in hand with cooperation,” believes Helbing. Indeed, the digital economy’s paradigm of the “prosumer” states that the Internet, social platforms, 3D printers and other developments will enable the co-producing consumer. “It will be hard to tell who is consumer and who is producer”, says Christian Waloszek. “You might be both at the same time, and this creates a much more cooperative perspective.”

Onearth's curator insight, March 26, 2013 4:58 AM

After homo sapiens sapiens it's time for homo sapiens socialis

Social Foraging
Dynamics of Social Interaction
Curated by Ashish Umre
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Beijing Wants A.I. to Be Made in China by 2030

Beijing Wants A.I. to Be Made in China by 2030 | Social Foraging | Scoop.it
A new plan from the top of the Chinese government calls for the country to become a powerhouse in artificial intelligence in just over a decade.
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UK to bring in drone registration

UK to bring in drone registration | Social Foraging | Scoop.it
The UK government has announced plans to introduce drone registration and safety awareness courses for owners of the small unmanned aircraft.
It will affect anyone who owns a drone which weighs more than 250 grams (8oz).
Drone maker DJI said it was in favour of the measures.
There is no time frame or firm plans as to how the new rules will be enforced and the Department of Transport admitted that "the nuts and bolts still have to be ironed out".
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Artificial Intelligence and National Security | Belfer Center for Science and International Affairs

Artificial Intelligence and National Security | Belfer Center for Science and International Affairs | Social Foraging | Scoop.it
Partially autonomous and intelligent systems have been used in military technology since at least the Second World War, but advances in machine learning and Artificial Intelligence (AI) represent a turning point in the use of automation in warfare. Though the United States military and intelligence communities are planning for expanded use of AI across their portfolios, many of the most transformative applications of AI have not yet been addressed. 

In this piece, we propose three goals for developing future policy on AI and national security: preserving U.S. technological leadership, supporting peaceful and commercial use, and mitigating catastrophic risk. By looking at four prior cases of transformative military technology—nuclear, aerospace, cyber, and biotech—we develop lessons learned and recommendations for national security policy toward AI.
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Lyft is working on self-driving technology of its own in a new facility

Lyft is working on self-driving technology of its own in a new facility | Social Foraging | Scoop.it
Lyft has been coming after Uber’s crown at full force, and it’s showing no signs of slowing. The ridesharing company has continued to charge through the door that’s been left wide open by Uber, and in its latest move, has begun developing self-driving technology of its own. On Friday, the firm announced that it was venturing into autonomous vehicles, and has opened a new self-driving-research center in Palo Alto, California. In the next few weeks, Lyft expects to hire a number of new engineering and technical folks to staff this new facility, and hopefully, overtake Uber as the leader in the future of transportation.
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Stop Using the Excuse “Organizational Change Is Hard”

Stop Using the Excuse “Organizational Change Is Hard” | Social Foraging | Scoop.it
During nearly every discussion about organizational change, someone makes the obvious assertion that “change is hard.” On the surface, this is true: change requires effort. But the problem with this attitude, which permeates all levels of our organizations, is that it equates “hard” with “failure,” and, by doing so, it hobbles our change initiatives, which have higher success rates than we lead ourselves to believe.

Our biases toward failure is wired into our brains. In a recently published series of studies, University of Chicago researchers Ed O’Brien and Nadav Klein found that we assume that failure is a more likely outcome than success, and, as a result, we wrongly treat successful outcomes as flukes and bad results as irrefutable proof that change is difficult.
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WEST ELM LAUNCHES NEW AI TOOLS TO SCAN PINTEREST BOARDS TRANSFORMING CUSTOMER INSPIRATION INTO PRODUCTS FOR PURCHASE

WEST ELM LAUNCHES NEW AI TOOLS TO SCAN PINTEREST BOARDS TRANSFORMING CUSTOMER INSPIRATION INTO PRODUCTS FOR PURCHASE | Social Foraging | Scoop.it
West Elm, a purpose-driven furnishings retail brand, has introduced the West Elm Pinterest Style Finder, a new online tool utilizing artificial intell
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IBM Takes the Blockchain Revolution to the Next Level

IBM Brings encrypted blockchain to System Z.  Now both transaction and the content are secure.  
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Ocado trialling how Oxbotica's Autonomous Van Will Make Groceries Awesome

Oxbotica has teamed up with Ocado Technologies to trial autonomous grocery deliveries around the Greenwich area of London.
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Quantum-secured blockchain

Blockchain is a distributed database which is cryptographically protected against malicious modifications. While promising for a wide range of applications, current blockchain platforms rely on digital signatures, which are vulnerable to attacks by means of quantum computers. The same, albeit to a lesser extent, applies to cryptographic hash functions that are used in preparing new blocks, so parties with access to quantum computation would have unfair advantage in procuring mining rewards. Here we propose a possible solution to the quantum-era blockchain challenge and report an experimental realization of a quantum-safe blockchain platform that utilizes quantum key distribution across an urban fiber network for information-theoretically secure authentication. These results address important questions about realizability and scalability of quantum-safe blockchains for commercial and governmental applications.
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SHARE LAB: Mapping and Quantifying political information warfare

SHARE LAB: Mapping and Quantifying political information warfare | Social Foraging | Scoop.it
It is a battle for domination over the individual nodes (people) and their social graphs.

By instrumentalizing and conquering individual nodes, they are able to interfere and influence their social graph  (see: Human Data Banks and Algorithmic Labor, SHARE Labs 20161) consisted of their social circles, hundreds of friends, colleagues and relatives. This doctrine is about conquering information streams of others through proxies. Social network ecosystems are fertile ground for different form of disinformation or smear campaigns against opponents, or just a cheerleading activities, depending on the style of the political warfare. In such environment, political propaganda (spreading of ideas, information, or rumor for the purpose of helping or injuring an institution, a cause, or a person 2), can be executed through individual nodes that are anonymous or without visible, direct connection of their real-life identities to a political party.
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Brain interfaces open up a whole new way to get hacked

Brain interfaces open up a whole new way to get hacked | Social Foraging | Scoop.it
Malicious software could use brain interfaces to help steal passwords and other private data.
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RoboBees: Big Possibilities in Micro-robots, Including Programmable Bees

RoboBees: Big Possibilities in Micro-robots, Including Programmable Bees | Social Foraging | Scoop.it

Robots that fly. Robots you wear. Robots the size of nickels. These new classes of robots all have one thing in common—every aspect of them must be conceived and created from scratch. There are no designs, materials, manufacturing processes, or off-the-shelf components for them.

Electrical engineer Robert Wood's Microrobotics Lab at Harvard University is at the forefront of engineering such robots, which can fly lighter, slither through narrower spaces, and operate at smaller sizes than anything imagined before.

 

"Traditionally robots have been big, powerful, metallic objects that might weld doors onto cars in a factory," Wood says. "The robots we explore are dramatically different, some on a new, micro-sized scale, others made of soft rather than rigid materials."

 

The ways the robots might one day help humans are astonishing, he says, potentially transforming fields like medicine and agriculture.

 

Take RoboBees, colonies of autonomous flying micro-robots that Wood's team has been developing for years. He says that they could one day perform search-and-rescue expeditions, scout hazardous environments, gather scientific field data, even help pollinate crops. (Related "The Drones Come Home.") Like much of Wood's work, the RoboBees' design is "bio-inspired."

 

"If you want to make something a centimeter big that can fly, several hundred thousand solutions already exist in nature," he says. "We don't just copy nature. We try to understand the what, how, and why behind an organism's anatomy, movement, and behavior, and then translate that into engineering terms."

 

He and fellow researchers devised novel techniques to fabricate, assemble, and manufacture the miniature machines, each with a housefly-size thorax, three-centimeter (1.2-inch) wingspan, and weight of just 80 milligrams (.0028 ounces). The latest prototype rises on a thread-thin tether, flaps its wings 120 times a second, hovers, and flies along preprogrammed paths.

 

The manufacturing process is based on folding layered elements, an idea inspired by children's pop-up books. Now Wood's experiments are focused on finding a self-contained energy source that won't be too heavy and that can efficiently power the delicate bees.


Via Dr. Stefan Gruenwald
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Mapillary opens up 25k street-level images to train automotive AI systems

Mapillary opens up 25k street-level images to train automotive AI systems | Social Foraging | Scoop.it
As more companies wade into the business of building artificial intelligence systems to help you drive (or do the driving for you), a startup founded by an..
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Meet Albert, the AI marketing platform that's better at your marketing job than you

Meet Albert, the AI marketing platform that's better at your marketing job than you | Social Foraging | Scoop.it
THE LAST couple of years have seen much moral panic about the tide of automation – scare stories about robots making human jobs redundant.
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AI Could Revolutionize War as Much as Nukes

AI Could Revolutionize War as Much as Nukes | Social Foraging | Scoop.it
IN 1899, THE world’s most powerful nations signed a treaty at The Hague that banned military use of aircraft, fearing the emerging technology’s destructive power. Five years later the moratorium was allowed to expire, and before long aircraft were helping to enable the slaughter of World War I. “Some technologies are so powerful as to be irresistible,” says Greg Allen, a fellow at the Center for New American Security, a non-partisan Washington DC think tank. “Militaries around the world have essentially come to the same conclusion with respect to artificial intelligence.”
Allen is coauthor of a 132-page new report on the effect of artificial intelligence on national security. One of its conclusions is that the impact of technologies such as autonomous robots on war and international relations could rival that of nuclear weapons. The report was produced by Harvard’s Belfer Center for Science and International Affairs, at the request of IARPA, the research agency of the Office of the Director of National Intelligence. It lays out why technologies like drones with bird-like agility, robot hackers, and software that generates photo-real fake video are on track to make the American military and its rivals much more powerful.
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XL Catlin launches Cyber and Data Protection Insurance Policy in Asia Pacific

XL Catlin today announced the launch of its Cyber and Data Protection Insurance policy in Asia Pacific.  With cyber risk ranking in the top 10 in today’s emerging risks, the new policy is designed to protect businesses from the increasing exposures they face from a malicious network compromise and data breach.

The insurance solution covers business interruption arising from a network compromise, associated extortion demands and first party incident response costs such as notification of the compromise of the network, forensic investigations and public relations support. Importantly, the policy covers third-party liability costs that organisations face as a result of a data breach, including any regulatory investigation or contractual liability associated with the Payment Card Industry Data Security Standard. Additionally, it offers broad coverage for liability associated with media exposures such as copyright infringement, trademark infringement, invasion of privacy and false advertising, in both offline and online content as well as social media.
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Aviva and Founders Factory are betting on these five fintech startups

Aviva and Founders Factory are betting on these five fintech startups | Social Foraging | Scoop.it
Aviva is betting on virtual reality, artificial intelligence and blockchain when it comes to technology.
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AI suggests recipe for a dish just by studying a photo of it

AI suggests recipe for a dish just by studying a photo of it | Social Foraging | Scoop.it
An algorithm trained on over one million online recipes can tell you what's in a dish and how to make it
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Particle Raises $20 Million To Clean Up The Chaos Of 450 Separate IoT Platforms

Particle Raises $20 Million To Clean Up The Chaos Of 450 Separate IoT Platforms | Social Foraging | Scoop.it
IoT has a massive problem: too many platforms. This company just raised $20M to help solve that.
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Baidu’s Project Apollo Takes Flight, Bringing Autonomous Cars Closer to Reality

Baidu’s Project Apollo Takes Flight, Bringing Autonomous Cars Closer to Reality | Social Foraging | Scoop.it
Like its namesake, Baidu’s Project Apollo aims to redefine the possibilities for human travel. But instead of landing men on the moon like NASA’s version of the program,  vehicles in this initiative must learn to drive themselves. In April, Baidu announced Project Apollo — an open source platform for self-driving that includes hardware, software and …
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How We Save Face: Researchers Crack the Brain's Facial-Recognition Code

How We Save Face: Researchers Crack the Brain's Facial-Recognition Code | Social Foraging | Scoop.it
Our brains have evolved to recognize and remember faces. As infants, one of the first things we learn is to look at the faces of those around us, respond to eye contact and mimic facial expressions. As adults, this translates to an ability to recognize human faces better and faster than other visual stimuli. We’re able to instantly identify a friend’s face among dozens in a crowded restaurant or on a city street. And we can glean whether they’re excited or angry, happy or sad, from just a glance.
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Human Data Banks and Algorithmic Labour: Facebook Algorithmic Factory

Human Data Banks and Algorithmic Labour: Facebook Algorithmic Factory | Social Foraging | Scoop.it
This is the second story in our investigation trilogy titled Facebook Algorithmic Factory, created with the intention to map and visualise a complex and invisible exploitation process hidden behind a black box of the World’s largest social network.

The three stories are exploring four main segments of the process:

Data collection – Immaterial Labour and Data harvesting
Storage and Algorithmic processing – Human Data Banks and Algorithmic Labour
Targeting – Quantified lives on discount

The following map is one of the final results of our investigation, but it can also be used as a guide through our stories, and practically help the reader to remain in the right direction and not to get lost in the complex maze of the Facebook  Algorithmic Factory.
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SHARE LAB: Browsing Histories – Metadata Explorations

We are creatures of habits, and we tend to create repetitions and patterns in our everyday behaviour. We tend to go to bed and wake up at similar times, to create our morning routines and create rituals of our social interactions. Since many segments of our lives are mediated by technology, those patterns are replicated and visible through the different digital footprints. When patterns are recognised, anomaly detection is born. As stated by Pasquinelli8, the two epistemic poles of pattern and anomaly are the two sides of the same coin of algorithmic governance. An unexpected anomaly can be detected only against the ground of a pattern regularity.

Both pattern recognition and anomaly detection are used as methods for understanding the vast quantity of data, our digital footprints that are being collected by many actors, from government agencies around the globe, internet companies and service providers or data dealers.

Something recognised as an anomaly in the eye of the algorithm can put you on the watchlist of a government agency or some behavioral pattern can label you as a target for an online advertisement. In the case of Mr. J simple bar charts and heatmap based on the number of browsing actions in time can reveal few patterns of behaviour.
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Diffusion Geometry Unravels the Emergence of Functional Clusters in Collective Phenomena

Diffusion Geometry Unravels the Emergence of Functional Clusters in Collective Phenomena | Social Foraging | Scoop.it
Collective phenomena emerge from the interaction of natural or artificial units with a complex organization. The interplay between structural patterns and dynamics might induce functional clusters that, in general, are different from topological ones. In biological systems, like the human brain, the overall functionality is often favored by the interplay between connectivity and synchronization dynamics, with functional clusters that do not coincide with anatomical modules in most cases. In social, sociotechnical, and engineering systems, the quest for consensus favors the emergence of clusters. Despite the unquestionable evidence for mesoscale organization of many complex systems and the heterogeneity of their interconnectivity, a way to predict and identify the emergence of functional modules in collective phenomena continues to elude us. Here, we propose an approach based on random walk dynamics to define the diffusion distance between any pair of units in a networked system. Such a metric allows us to exploit the underlying diffusion geometry to provide a unifying framework for the intimate relationship between metastable synchronization, consensus, and random search dynamics in complex networks, pinpointing the functional mesoscale organization of synthetic and biological systems.
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Why Is 'Systems Thinking' So Rare?

Center for Collective Dynamics of Complex Systems (CoCo) Seminar Series April 27, 2017 Mark Sellers (Systems Science, Binghamton University / Northrop Grumman…

Via Hiroki Sayama
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