Tim Cavanaugh | July 3, 2009
Flaming Eggheads: In the current New Yorker, Malcolm Gladwell gives an energetic pan to Chris Anderson's Free: The Future of a Radical Price. As Anil Dash points out, there's a vehement tone to Gladwell's review that suggests some harder feelings at work than you'd expect in a standard piece of intra-Condé Nast logrolling. Anderson has replied somewhat snippily too. (Disclosure: I know Anderson medium well and like him; Gladwell I've never met but he looks cool in pictures.)
The central virtue of Wired, as a great man once told me, was to be right enough on the large trend that it could afford to be repeatedly, spectacularly wrong on almost all the specifics. As a result, you can nearly always refute a Wired-type manifesto by pointing out how facts on the ground keep falling short of the vision. (I used to do that a lot, sometimes in the pages of Wired itself.) So Gladwell is on semi-solid ground in referring to YouTube's high maintenance costs, The Wall Street Journal website's (sporadically applied) pay structure, premium cable, and iPhone downloads as areas where free isn't paying and paid-for is paying.
Gladwell gets lost in his other arguments, though. He pedantically objects to Stewart Brand's statement that "information wants to be free," by noting, correctly, that "information can't actually want anything." But then he uses that same formula, stating that in another case, "information does not want to be free. It wants to be really, really expensive."
That other case is the market for orphan pharmaceuticals, which are growing more expensive. But Gladwell was right the first time: The new drug recipes don't want to be free or expensive. Their manufacturers want them to be expensive; many other parties (buyers, industrial spies, some national governments, and after a period of protection, U.S. patent laws) want them to be free.
Some of those parties have more moral legitimacy than others, but the point is that there are two parties to every deal. Gladwell uses this point when it serves him. He starts off his review by citing a dispute between the Dallas Morning News (which wants to license its content at a high price) and Amazon.com (which wants to pay close-to-free prices to repackage the paper's content). In Gladwell's formulation, this undermines Brand's famous phrase. "Why," he writes, "are the self-interested motives of powerful companies being elevated to a philosophical principle?"
But most of us have no problem with the principle that you have to pay for quality, and that view certainly serves the interests of Morning News owner A. H. Belo Corporation. A. H. Belo doesn't enjoy Amazon's vast market cap, but it has been around for more than 150 years and lists on the New York Stock Exchange — unlike Amazon, which lists in the Nasdaq ghetto. Should Belo's concerns be privileged because its industry is in decline?
For all the quibbling, it seems pretty straightforward that over time, the natural progression of information is to become worth $0.00. I might feel differently if I were a paleontologist trying to get a dig funded, but to take an example close to hand: A brand new title from Gladwell or Anderson fetches a hefty price; after only a few weeks it becomes available for a few bucks on the remainder table, after a year or so for a dollar at the charity bin; and eventually it will be put out by the curb, to be picked up for free by trashpickers like me.
And that's just information in some physical delivery form. (That is, right now, a nice printed book has some intrinsic value.) The effect is even sharper for pure information. Right now it might be worth it to me to hire somebody to steal Gladwell's notebooks or memory stick, in the hope of using his ideas to write a bestseller of my own. But the value of those intellectual nuggets drops rapidly. Death accelerates the process: Anderson's personal papers may one day be of interest to some university archive, but eventually they will be picked over and thrown out by disinterested liquidators (who I like to imagine speaking in broad cockney accents). Maybe some portions will be digitized, but in time they'll be "accidentally" deleted to make space for something more current.
The other time factor is that right now we are in a period of plummeting prices for the kind of information both men are writing about. To take Gladwell's examples: Downloading an album's worth of music is cheaper than buying a CD used to be. Premium cable, in adjusted dollars, is cheaper than it was when Jerry Levin first cooked up that so-crazy-it-might-work idea. Pharmaceutical information tends downward so quickly that it requires a vast scaffolding of IP protection and regulation to keep it up. That trend may change with new models of content creation or the invention of smellivision or whatever. But right now it's Anderson's view that is ascendant.
You can, of course, read Gladwell's review for free.
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One should think that Tim Cavanaugh, posting as he does on a site that relies on contributions to stay afloat and has barely a handful of faithful true-believing regulars, would be loath to raise the issue of information and value at all.
One would not think that Lester could ever top his personal record of fitting sixteen baked potatoes in his rectum. One would then be doubting his perserverance, of course. THE TITLE IS AS GOOD AS HIS.
Gladwell hasn't done his research if he thinks he's contradicting Brand. Brand's full statement was: "On the one hand information wants to be expensive, because it's so valuable. The right information in the right place just changes your life. On the other hand, information wants to be free, because the cost of getting it out is getting lower and lower all the time. So you have these two fighting against each other."
"Information wants to be free" in the hacker sense means you
don't keep vital information about use of equipment away from the
public as a means of security.
These idiots took it to a new level of stupid. Gladwell looks like
a genetic mistake.
Intelligence commentary from Gene Expression blog:
Thus, in a world where there is more FREE stuff, the quality of
stuff will decline. It's hard to believe that this needs to be
pointed out. And again, this is not the same as prices declining
because technology has become more efficient -- prices are still
above 0 in that case. FREE lives in a world of its own.
If you're only trying to get people to buy your target product by
packaging it with a FREE trinket, then that's fine. You're still
selling something, but just drawing the customer in with FREE
stuff. This jibes with another behavioral economics finding -- that
when two items A and B are similar to each other but very different
from item C, all lying on the same utility curve, people ignore C
because it's hard to compare it to the altneratives. They end up
hyper-comparing A and B since their features are so similar, and
whichever one is marginally better wins.
http://www.gnxp.com/blog/2009/07/gladwell-at-it-again.php
I just picked up a subscription to Wired. I love reading about
consumer electronics because its one of the few fields the
government can't claim they have to interfere in the "public
interest".
They fucked up health care, education, and letter delivery. Now
they're busily fucking up finance and auto manufacture as
well.
But consumer electronics lives on! And its about the only field
where we see continuous, rapid, predictable improvement.
Interesting. I normally steer away from anything approaching ad
hominem, but the entire gist of this thing is Gladwell vs.
Anderson.
I have books from both of them on my shelf, and don't think too
highly of either of them from an intellectual standpoint, but
Anderson gets the nod on at least being sincere in his
outlook.
Gladwell is like someone creepy character out of a Rand
novel.
They both deal with abstract ideas spun off of anecdotal evidence,
and never seem to be harmed by the emptiness of their ideas.
They just keep on writing, and living in the public realm, being
treated as if they've actually contributed something valuable when
in fact they have not.
"I just picked up a subscription to Wired. I love reading about
consumer electronics because its one of the few fields the
government can't claim they have to interfere in the "public
interest".
FCC?
So with health care we say there can be no free health care since people will just be made to wait and therefore pay with time. This is exactly true with information. The "free" review is not free, it would eat up a decent chunk of my finite life to read it. That is why compilation, editing and review is even more valuable than ever. When movable type replaced woodcuts I supposed everyone had the same worry, that information was becoming free. The intertube has reduced the cost of printing, sure, but many people prefer to read a print publication. It is not like the invention of TV eliminated books. The Internet will not do that either. It changes things sure, moves the equilibrium and dynamics a bit, but there will always be people willing to pay for the best information. We might pay with ads or with a subscription or with providing bandwidth or with time. But there is still a great market for providing information for pay, just ask Google.
"most of us have no problem with the principle that you have
to pay for quality...it seems pretty straightforward that over
time, the natural progression of information is to become worth
$0.00
Most of "us" (the stable of "libertarian" commenters here) have no
problem with the principle of stealing quality, be it
MP3s, movies, games. The "natural progression" of most
"information" is to become nearly worthless over time, certainly,
but nobody wants the worthless stuff. They use this
"natural progression" argument as an excuse to "pirate" (a fuzzy
libertarian euphemism for theft). The very best "information"
retains its value over decades and centuries.
Regardless, wouldn't a true "libertarian" argue that only the
property owner has a right to determine the price and value and
means of distribution of his work? If he charges too much or limits
the distribution channels or decides to withhold it altogether,
it's his right to do so, because it's his.
"They just keep on writing, and living in the public realm,
being treated as if they've actually contributed something valuable
when in fact they have not"
Ray Gardner unintentionally nails the blogger/commenter
symbiosis.
The very best "information" retains its value over decades
and centuries.
Look at Shakespeare, though. You can read anything written by him
online for free. This is not "pirating" or theft. Unless I'm
misunderstanding your argument.
That Credit Suisse report on Google's YouTube costs was pretty
horribly wrong, by the way:
http://digitaldaily.allthingsd.com/20090617/credit-suisse-far-better-at-analyzing-derivatives-than-youtube-infrastructure-costs/
He may be on semi-solid ground elsewhere, but he's not there.
me: Regardless, wouldn't a true "libertarian" argue that
only the property owner has a right to determine the price and
value and means of distribution of his work? If he charges too much
or limits the distribution channels or decides to withhold it
altogether, it's his right to do so, because it's his.
I would think a true libertarian would argue that a
government-enforced monopoly is antithetical to both libertarian
and free-market principles.
I would think a true libertarian would argue that a
government-enforced monopoly is antithetical to both libertarian
and free-market principles.
Uh, your monopoly on the use of your tangible property (house, car,
lawnmower) is also government-enforced, so you might want to
rethink that.
Not sure where "me again" is going with the symbiosis comment,
but I'll expound on the excerpt that he pulled out:
Both Gladwell and Anderson are professional journalists who
specialize in taking a known, factual anecdote of sorts, and then
spinning their own ideas off of that factoid.
Gladwell takes valid research, and without presenting the equally
valid counter-evidence on the same subject, posits his own deeply
tainted ideological views along side of the research.
That's why Richard Posner's now semi-famous quote was repeated as
much as it was, because it was so true (that "Blink" was written
for people who don't read). Gladwell's approach is genuinely
dishonest, and can only be digested in the complete absence of any
critical thinking skills.
Anderson on the other hand has some ideas that are just pie in the
sky kind of stuff. His worst sin is a lack of intellectual
discretion. He is a sharp guy, and somewhere along the way his
moderate success has dulled his ability to be critical of his own
ideas.
More to the point of Chris's free idea, see Russ Roberts' podcast
interview with him.
http://www.econtalk.org/archives/2008/05/chris_anderson_1.html
I'll listen to the podcast again, but the way I recall it, they
were focusing more on how "cheap" information was becoming.
Tulpa: Uh, your monopoly on the use of your tangible
property (house, car, lawnmower) is also government-enforced, so
you might want to rethink that.
It's not really the same. We have agreed it's better to authorize
the government to protect our tangible property than to defend our
use of it ourselves, but that's about as far as it goes. The
government doesn't tell me I can't go halvsies on a car with my
neighbor, it doesn't tell me I can't have houseguests, it doesn't
tell me I can't combine parts from different lawnmowers to make my
own that suits me better (and mixes drinks while I mow the lawn!).
The problem with the copyright monopoly is that it restricts my use
of my property unduly.
I can buy seeds, grow tomatoes, and give half of them to my
neighbor, but I can't buy a CD, make a copy, and give that copy to
my neighbor (or give the original to my neighbor and keep the
copy). From a libertarian perspective, why the difference?
An addendum or clarification:
In my view, the difference between Gladwell and Anderson is that
Mr. Anderson is speculating based upon, valid, observable trends
whereas Gladwell is overtly manipulative of his data.
And on monopolies, someone in that chain of posts doesn't
understand the basics of property rights.
In context to a free society, the government provides a basic legal
infrastructure for the protection of private property. Within that
framework, a person has the monopoly power or sole ownership of
their property.
This includes one's labor as well personal property. Equivocating
my lawn mower with a monopoly of market power is to totally
misunderstand the entire subject.
To whomever was missing the boat on that one, do a search on
Richard Epstein and the rule of law. I think he expounds on it
best.
Also look up the right to exclude as well as the right to develop,
etc.
They use this "natural progression" argument as an excuse to
"pirate" (a fuzzy libertarian euphemism for theft). The very best
"information" retains its value over decades and
centuries.
If you go to almost any public library you'll find a set of BBC
productions of the complete works of Shakespeare on DVD. If you're
a person of refinement you'll be astounded at your good fortune.
You'll note that there's a Midsummer Night's Dream with
Helen Mirren; Derek Jacoby as Richard II. You'll imagine the pride
of being the only person in the tristate area who has seen King
John. You'll relish living in a country where such treasures
are available to you at no cost. Then you won't check out any of
them.
I can buy seeds, grow tomatoes, and give half of them to my
neighbor, but I can't buy a CD, make a copy, and give that copy to
my neighbor (or give the original to my neighbor and keep the
copy). From a libertarian perspective, why the
difference?
Making a copy and giving it to someone else is not "going
halvsies". This causes you and your neighbor to each have full use
of all the property at all times.
Going halvsies would be some sort of arrangement where you and your
neighbor each get possession of the CD for half of each week or
something. (This is exactly how you would "go halvsies" on a car,
to cite one of your examples.) Note that this is NOT a violation of
copyright law, it's perfectly legal even under the current
copyright regime. As long as there is only one instance of the
copyrighted material usable at any given time, you're within the
confines of the law.
Now I don't like the provisions about converting to different
formats, combining pieces of works you own, and otherwise altering
works that you have legally obtained for your own use. Most of all
I don't like the ridiculously long term of copyright. But the basic
idea of copyright is a good one.
Ray Gardner,
Whom are you referring to? You know, the names above these posts
are there for a reason.
Ray, I really need to write some boilerplate metas. I was going
to preamble that with a note that tax-funded libraries are a
million times worse than murder, but that you should feel free to
use them anyway because the government won't let you sublet the
late Murray Rothbard's rent-controlled apartment. But I'm trying to
write shorter.
You also could have noted that what is nearly costless to me has
been largely underwritten by British television users. But my point
isn't the labor theory of value; it's what a buyer will actually
pay for the product, no matter how much cost went into producing
it.
In any event the portion of my city taxes that go into funding the
library is a sunk cost. As a discrete transaction, picking up
Othello is free to me.
Cool. Fuck the new york times. Fuck all reporters for that matter. Everything you need to know can be made up at the dining room table and uploaded to your website.
I happen to work in public radio - that's right, funded by the
government. Ooo, scary. However, the freedom to choose which
stories are important, which ones we want to fund and how we want
to report them are all still secure - we just receive funding from
the government. We also rely on donations and charity, sometimes I
think too heavily. If newspapers, magazines or other news sources
move into the "public interest" realm, as they somewhat has with
examples of public tv and radio, then information will largely step
into the "free" zone, paid for via the electricity bill, and maybe
that's it.
I have yet to find a problem with public sources of information,
but I'm bracing myself for a Mel-Gibson-like cry of freedom from
the libertarians.
Tim:
I understand in needing to keep posts succinct.
A comment on taxes seemed appropriate because it occurred to me
that I've never given libraries much thought on that level.
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I really need to write some boilerplate metas. I was going
to preamble that with a note that tax-funded libraries are a
million times worse than murder, but that you should feel free to
use them anyway because the government won't let you sublet the
late Murray Rothbard's rent-controlled apartment. But I'm trying to
write shorter.
Lol!
I like the use of the word "metas". "Itellectual property" is
almost always a bullshit phrase, mostly because it confuses rather
than defines (note the constant arguments over what it means).
Calling it "metaphysical property" is much more accurate. Would
anyone in their right mind want government dealing with anything
metaphysical?
Hey, we've been reading about the Honduras "military coup" (it ain't one) for a week or so in the professional media. Can someone link me to a WaPo, NYT, CNN etc. article that explains WTF is going on as well as this piece of "free" information?
Gladwell's so fucking rich it's amazing that he gets so pissed when someone else tries to peddle his own patented "so obvious right in front of your nose but you didn't see it until I pointed it out for you" brand of bullshit. But I guess that's how you get so fucking rich.
I have yet to find a problem with public sources of
information,
Why doesn't this surprise me? Perhaps it has to do with your shared
world-view? Not that there's anything wrong with that, but it's a
bit myopic, if not completely self-absorbed, to report your own
satisfaction with public sources of information as if it's useful
to the debate.
Besides, even if it were the case the NPR represented some platonic
ideal of truth, wisdom and fairness there is still the
philosophical issue of taking money from others to indulge your
particular tastes in media coverage. NPR listeners are on average
fairly affluent. Certainly they much more affluent than the average
person being forced to pay for NPR. The question arises then, why
should we expect people of limited means to contribute to the
listening enjoyment of those much better situated? Shouldn't these
affluent listeners care enough about the less fortunate
non-listeners to foot the bill themselves?
but I'm bracing myself for a Mel-Gibson-like cry of freedom
from the libertarians.
Just a bit of gratuitous advice: When you attempt to preemptively
dismiss those who disagree with you with cheap, meaningless
nonsense like that, it makes it much harder to take you
seriously.
"Itellectual property" is almost always a bullshit phrase,
mostly because it confuses rather than defines (note the constant
arguments over what it means). Calling it "metaphysical property"
is much more accurate.
"Intangible property" is more accurate still; "intellectual
property" is a subset of intangible property.
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