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Equilibrium analysis of the distribution of information in human society

Equilibrium analysis of the distribution of information in human society. revisited in August, 2009 Shigeki Goto (Waseda University) Hisao Nojima (Seijo University). Friends are my treasures. In Network Society, each individual lives autonomously. Still, you are not alone.

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Equilibrium analysis of the distribution of information in human society

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  1. Equilibrium analysis ofthe distribution of information in human society revisited in August, 2009 Shigeki Goto (Waseda University) Hisao Nojima (Seijo University)

  2. Friends are my treasures. • In Network Society, each individual lives autonomously. Still, you are not alone. • Network  maniac  lonely lifeis not a correct diagram. • The ICT Revolution is the second phase of the Industrial Revolution.*) Information and Communication Tech.

  3. Adam Smith and the Industrial Revolution • His famous book:“An inquiry into the nature andcauses of the wealth of nations” • The Industrial Revolution and transportation technology Information and communication

  4. Concept of division of labor Mr. A has 10 books Ms. B has 10 books Lend andBorrow

  5. Division of labor and others knowledge10 Mr. A Mr. A cost10 knowledge 10 cost 1 10 10 10 10 10 1 1 1 1 1 Total knowledge 60 Total cost 15

  6. When each individual lives alone knowledge 10 Mr. A Mr. A cost 10 Knowledge 10 10 10 10 10 cost 10 10 10 10 10 10 60 Total cost 60 Total knowledge

  7. Theory of overflow brain brain end users large society

  8. brain 2-layer Network society is not flat. gate keepers 3-layer

  9. Network society is not flat.

  10. Distribution of information • You do not have to be an expert in all the areas. • There is a social structure for division of labor.Investigation on the human memory (Wenger, 1987)

  11. When others would help you. • A case study T. Sakatani and H. Nojima,The structure of information flow among network users, in Advances in Japanese Cognitive Science, Vol. 5, pp.49—71, 1992. • Findings • There is a three-layer structure. • The roles of gatekeepers (or brokers) are important.

  12. Distribution of information • Research scientists at NTT Laboratories • About 180 people • Inquiry • 145 scientist responded. • The number of network users is 95. • Investigation • Question-Asking behavior How many people ask you?

  13. Three-layer structure

  14. Characteristics of the structure • It is an informal structure. It does not follow the structure of the company. • Three groups of people • Brains: small number of people who have much knowledge • Gate Keepers: small number of local experts who can cover wide area of topics • End Users: many people who have little knowledge • Each brain recognizes who are other brains. • A brain has his/her specific field of knowledge. • Each gatekeeper does not know who are other gatekeepers. • A gatekeeper does not have any specific area of knowledge. He/she knows general information.

  15. Equilibrium analysis of the three-layer structure • S. Goto and H. Nojima,Equilibrium analysis of the distribution of information in human society,Artificial Intelligence, 75 (1995), pp.115—130. • H. Nojima,Cognitive Analysis on Roles of Others in Problem Solving,Ph.D Thesis, Waseda University, March, 2003.

  16. The three-layer structure is economically reasonable.

  17. Micro-ecomonics or Price theory • Knowledge as utilityEquilibrium of demand and supplyDemand — utility functionSupply — cost function • Two-layer structurea brain and end usersdivision of labor • Three-layer structureThe two-layer structure is not stable in a large society.

  18. Equilibrium point • Knowledge as utility： utility function • Zipf’s Law • Cost of knowledge: cost function • Approximate the cost function based on computer memory structure • At the equilibrium point, utility=cost. • The equilibrium point is meaningful to a single person. • He/she memorize a word, if utility > cost.

  19. Utility function — Zipf’s Law • Occurrence of English words, Zipf (1949) • 1st: the (10%) • 2nd: of (5%) • 3rd: and (3.3%) • 4th: to (2.5%) • Empirical law which is applied to • Population of cities • Commands in Emacs • Number of accesses to popular WWW pages • Use Zipf’s law as a diminishing marginal utility function Marginal utility function

  20. Equilibrium point • Knowledge as utility： utility function • Zipf’s Law • Cost of knowledge: cost function • Approximate the cost function based on computer memory structures • At the equilibrium point, utility=cost. • The equilibrium point is meaningful to a single person. • He/she memorize a word, if utility > cost.

  21. Cost function — memory cost b b Number of words

  22. Equilibrium — a single user utility = cost Number of words

  23. Twp-layer structure • Which is better, live alone or depend on a brain? • No division of labor if people live by themselves. • Division of labor means depending on others. • Cost analysis • Social cost = Brain cost＋ End User cost • When division of labor is meaningful?

  24. Equilibrium point of end users and a brain O: the original equilibrium pointX: depending on a brain A—B: keep memory by oneself B—C: use the knowledge of a brain higher cost lower cost function

  25. Equilibrium point of a brain Utility function of a brain A brain has more knowledge. Start depending on a brain

  26. From two-layer to three-layer • The two-layer model does not scale. • The cost increases. • The links to the end users. • Overflow theory • The end users should wait for a long time, and the cost for communications would increase. • The relay point — a gatekeeper

  27. Three-layer structure is found elsewhere • Popular structure in human society

  28. Applications • Several issues are discussed from this point. • How to make good successors of brains. • The difference in the amount of knowledge is huge between a brain and an end user. • It is economically sound to depend on brains. • The issue is how to make good successors of brains. • How to solve the overflow. • It is not necessary to have human gatekeepers. • Manuals, dictionaries, textbooks are helpful to end users.

  29. Conclusion • Three-layer structure： Knowledge is distributed.The structure is economically reasonable.

  30. Lesson: division of labor • The concept was well described by Adam Smith.Transportation supports the industrial revolution. • ICT will further promote the division of labor.Many things are based on information. • Network society is not simply flat.Layered structures are stable in a large society. Brain Broker =Gate-keeper End User

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