Interview with Richard Thaler


Interview with Richard Thaler, University of Chicago behavioral economist, by Douglas Clement Editor, The Region: “…Region: One thing we haven’t talked about yet is your work on reciprocity and cooperation. And let’s use another British example, Golden Balls. You did some fascinating research on this British game show. Can you tell that story and what it illustrated?
Thaler: You know, it’s funny, this goes back to Gary’s line [about behavior in real markets as opposed to labs]. As you know, this game show ends in a prisoner’s dilemma. And there have been thousands of experiments run on one-shot prisoner’s dilemmas. We know that economic theory says that the rational strategy is to defect; theory says everyone will defect. It’s the dominant strategy.
In experiments, about 40 to 50 percent of the people cooperate, but it involves small stakes. In this paper we write about the actual game show, there’s one trial, a round in the actual game show—you may have seen the clip of it—where it’s not small stakes at all; it’s around 100,000 pounds. And that’s one of the things we were interested in: What happens when you raise the stakes?
This is what happens: You get a plot like this (see hand-drawn plot and actual plot). I just happened to have drawn this for another visitor, a grad student.
So, yes, the economists were right. If you raise the stakes, cooperation falls. But it falls to the same level you see in the lab. The interesting behavioral thing is, when the stakes are small, compared to what other people are playing for in the game show, then cooperation gets even higher.
This goes to bounded self-interest. Economists assume people are unboundedly unscrupulous—or I’ll say self-interested, a more polite term. But there have been lots of experiments where you leave a wallet out and depending on the place—I don’t remember the exact data—but a large percentage get returned. Now, some wallets also get picked clean first, but … so I wrote about this too. (He displays a photo of a roadside rhubarb stand.)
Region: What is this?
Thaler: This is significant. Notice the features of this. It’s a roadside stand; they’re selling rhubarb. And it’s got an honor box with a lock on it.
I think this is exactly the right model of human nature, that if you put this stuff out there, enough people will leave money that it’s worth the farmer’s time to put it out. But if you left the money in a box that was unlocked, somebody would take it.
Region: It takes just one dishonest person to “undo” the honesty of many others …
Thaler: Right. If you ask somebody directions, most people will tell you. It’s very fortunate that we don’t live in a society where everybody is out to take advantage of us. For instance, if you have work done in your house or on your car, there’s absolutely no way for you to monitor what they’re doing, unless you’re willing to spend the time watching them and you happen to know a lot about the work, materials and methods being used.
So it has to involve trust. Trust is really important in society, and anything we can do to increase trust is worthwhile. There’s probably nothing you could do to help an economy grow faster than to increase the amount of trust in society….

Platform Strategies for Open Government Innovation


New paper by B. Cleland, B. Galbraith, B. Quinn, and P. Humphreys: “The concept of Open Innovation, that inflows and outflows of knowledge can accelerate innovation, has attracted a great deal of research in recent years (Dahlander and Gann, 2010; Fredberg et al, 2008). At the same time there has been a growing policy interest in Open Government, based in part on the assumption that open processes in the public sector can enable private sector innovation (Yu and Robinson, 2012). However, as pointed out by Huizingh (2011), there is a lack of practical guidance for managers. Furthermore, the specific challenges of implementing Open Innovation in the public sector have not been adequately addressed (Lee et al., 2012). Recent literature on technology platforms suggests a potentially useful framework for understanding the processes that underpin Open Innovation (Janssen and Estevez, 2013; O’Reilly, 2011). The paper reviews the literature on Open Innovation, e-Government and Platforms in order to shed light on the challenges of Open Government. It has been proposed that re-thinking government as a platform provider offers significant opportunities for value creation (Orszag, 2009), but a deeper understanding of platform architecture will be required to properly exploit those opportunities. Based on an examination of the literature we identify the core issues that are likely to characterise this new phenomenon.”
 

Building a Smarter City


PSFK: “As cities around the world grow in size, one of the major challenges will be how to make city services and infrastructure more adaptive and responsive in order to keep existing systems running efficiently, while expanding to accommodate greater need. In our Future Of Cities report, PSFK Labs investigated the key trends and pressing issues that will play a role in shaping the evolution of urban environments over the next decade.

A major theme identified in the report is Sensible Cities, which is bringing intelligence to the city and its citizens through the free flow of information and data, helping improve both immediate and long term decision making. This theme consists of six key trends: Citizen Sensor Networks, Hyperlocal Reporting, Just-In-Time Alerts, Proximity Services, Data Transparency, and Intelligent Transport.

The Citizen Sensor Networks trend described in the Future Of Cities report highlights how sensor-laden personal electronics are enabling everyday people to passive collect environmental data and other information about their communities. When fed back into centralized, public databases for analysis, this accessible pool of knowledge enables any  interested party to make more informed choices about their surroundings. These feedback systems require little infrastructure, and transform people into sensor nodes with little effort on their part. An example of this type of network in action is Street Bump, which  is a crowdsourcing project that helps residents improve their neighborhood streets by collecting data around real-time road conditions while they drive. Using the mobile application’s motion- detecting accelerometer, Street Bump is able to sense when a bump is hit, while the phone’s GPS records and transmits the location.

retio-app

The next trend of Hyperlocal Reporting describes how crowdsourced information platforms are changing the top-down nature of how news is gathered and disseminated by placing reporting tools in the hands of citizens, allowing any individual to instantly broadcast about what is important to them. Often using mobile phone technology, these information monitoring systems not only provide real-time, location specific data, but also boost civic engagement by establishing direct channels of communication between an individual and their community. A good example of this is Retio, which is a mobile application that allows Mexican citizens to report on organized crime and corruption using social media. Each issue is plotted on a map, allowing users and authorities to get an overall idea of what has been reported or narrow results down to specific incidents.

.openspending

Data Transparency is a trend that examines how city administrators, institutions, and companies are publicly sharing data generated within their systems to add new levels of openness and accountability. Availability of this information not only strengthens civic engagement, but also establishes a collaborative agenda at all levels of government that empowers citizens through greater access and agency. For example, OpenSpending is a mobile and web-based application that allows citizens in participating cities to examine where their taxes are being spent through interactive visualizations. Citizens can review their personal share of public works, examine local impacts of public spending, rate and vote on proposed plans for spending and monitor the progress of projects that are or are not underway…”

Smart Machines: IBM's Watson and the Era of Cognitive Computing


New book from Columbia Business School Publishing: “We are crossing a new frontier in the evolution of computing and entering the era of cognitive systems. The victory of IBM’s Watson on the television quiz show Jeopardy! revealed how scientists and engineers at IBM and elsewhere are pushing the boundaries of science and technology to create machines that sense, learn, reason, and interact with people in new ways to provide insight and advice.
In Smart Machines, John E. Kelly III, director of IBM Research, and Steve Hamm, a writer at IBM and a former business and technology journalist, introduce the fascinating world of “cognitive systems” to general audiences and provide a window into the future of computing. Cognitive systems promise to penetrate complexity and assist people and organizations in better decision making. They can help doctors evaluate and treat patients, augment the ways we see, anticipate major weather events, and contribute to smarter urban planning. Kelly and Hamm’s comprehensive perspective describes this technology inside and out and explains how it will help us conquer the harnessing and understanding of “big data,” one of the major computing challenges facing businesses and governments in the coming decades. Absorbing and impassioned, their book will inspire governments, academics, and the global tech industry to work together to power this exciting wave in innovation.”
See also Why cognitive systems?

Talking About a (Data) Revolution


Dave Banisar at Article 19: “It is important to recognize the utility that data can bring. Data can ease analysis, reveal important patterns and facilitate comparisons. For example, the Transactional Access Clearing House (TRAC – http://www.trac.org) at Syracuse University uses data sets from the US Department of Justice to analyze how the federal government enforces its criminal and civil laws, showing how laws are applied differently across the US.
The (somewhat ICT-companies manufactured) excitement over “E-government” in the late 1990s imagined a brave new e-world where governments would quickly and easily provide needed information and services to their citizens. This was presented as an alternative to the “reactive” and “confrontational” right to information laws but eventually led to the realization that ministerial web pages and the ability to pay tickets online did not lead to open government. Singapore ranks near the top every year on e-government but is clearly not an ‘open government’. Similarly, it is important to recognize that governments providing data through voluntary measures is not enough.
For open data to promote open government, it needs to operate within a framework of law and regulation that ensures that information is collected, organized and stored and then made public in a timely, accurate and useful form.   The information must be more than just what government bodies find useful to release, but what is important for the public to know to ensure that those bodies are accountable.
Otherwise, it is in danger of just being propaganda, subject to manipulation to make government bodies look good. TRAC has had to sue the USA federal government dozens of times under the Freedom of Information Act to obtain the government data and after they publish it, some government bodies still claim that the information is incorrect.  Voluntary systems of publication usually fail when they potentially embarrass the bodies doing the publication.
In the countries where open data has been most successful such as the USA and UK, there also exists a legal right to demand information which keeps bodies honest. Most open government laws around the world now have requirements for affirmative publication of key information and they are slowly being amended to include open data requirements to ensure that the information is more easily usable.
Where there is no or weak open government laws, many barriers can obstruct open data. In Kenya, which has been championing their open data portal while being slow to adopt a law on freedom of information, a recent review found that the portal was stagnating. In part, the problem was that in the absence of laws mandating openness, there remains a culture of secrecy and fear of releasing information.
Further, mere access to data is not enough to ensure informed participation by citizens and enable their ability to affect decision-making processes.  Legal rights to all information held by governments – right to information laws – are essential to tell the “why”. RTI reveals how and why decisions and policy are made – secret meetings, questionable contracts, dubious emails and other information. These are essential elements for oversight and accountability. Being able to document why a road was built for political reasons is as crucial for change as recognizing that it’s in the wrong place. The TRAC users, mostly journalists, use the system as a starting point to ask questions or why enforcement is so uneven or taxes are not being collected. They need sources and open government laws to ask these questions.
Of course, even open government laws are not enough. There needs to be strong rights for citizen consultation and participation and the ability to enforce those rights, such as is mandated by the UNECE Convention on Access to Environment Information, Public Participation and Access to Justice (Aarhus Convention). A protocol to that convention has led to a Europe-wide data portal on environmental pollution.
For open data to be truly effective, there needs to be a right to information enshrined in law that requires that information is made available in a timely, reliable format that people want, not just what the government body wants to release. And it needs to be backed up with rights of engagement and participation. From this open data can flourish.  The OGP needs to refocus on the building blocks of open government – good law and policy – and not just the flashy apps.”

Beyond Transparency


New book on Open Data and the Future of Civic Innovation: The rise of open data in the public sector has sparked innovation, driven efficiency, and fueled economic development. And in the vein of high-profile federal initiatives like Data.gov and the White House’s Open Government Initiative, more and more local governments are making their foray into the field with Chief Data Officers, open data policies, and open data catalogs.
While still emerging, we are seeing evidence of the transformative potential of open data in shaping the future of our civic life. It’s at the local level that government most directly impacts the lives of residents—providing clean parks, fighting crime, or issuing permits to open a new business. This is where there is the biggest opportunity to use open data to reimagine the relationship between citizens and government.
Beyond Transparency is a cross-disciplinary survey of the open data landscape, in which practitioners share their own stories of what they’ve accomplished with open civic data. It seeks to move beyond the rhetoric of transparency for transparency’s sake and towards action and problem solving. Through these stories, we examine what is needed to build an ecosystem in which open data can become the raw materials to drive more effective decision-making and efficient service delivery, spur economic activity, and empower citizens to take an active role in improving their own communities….
This book is a resource for (and by) practitioners inside and outside government—from the municipal chief information officer to the community organizer to the civic-minded entrepreneur. Beyond Transparency is intended to capture and distill the community’s learnings around open data for the past four years. And we know that the community is going to continue learning. That’s why, in addition to the print version of the book which you can order on Amazon, we’ve also published the digital version of this book on this site under a Creative Commons license. The full text of this site is on GitHub — which means that anyone can submit a pull request with a suggested edit. Help us improve this resource for the community and write the next edition of Beyond Transparency by submitting your pull requests.
Code for America is a national nonprofit committed to building a government for the people, by the people, that works in the 21st century. Over the past four years, CfA has worked with dozens of cities to support civic innovation through open data. You can support this work by contributing to the book on GitHub, joining the CfA volunteer community (the Brigade), or connecting your city with CfA.

GitHub and Government


New site: “Make government better, together. Stories of open source, open data, and open government.
This site is an open source effort to showcase best practices of open sourcing government. See something that you think could be better? Want to submit your own story? Simply fork the project and submit a pull request.

Ready to get started on GitHub? Here are some ideas that are easy to get your feet wet with.

Feedback Repository

GitHub’s about connecting with developers. Whether you’re an API publishing pro, or just getting started, creating a “feedback” repository can go a long way to connect your organization with the community. Get feedback from current and potential data consumers by creating a specific repository for them to contribute ideas and suggestions for types of data or other information they’d like to see opened. Here’s how:

  1. Create a new repository
    • Choose your organization as the Owner
    • Name the repository “feedback” or similar
    • Click the checkbox to automatically create a README.md file
  2. Set up your Readme
    • Click README.md within your newly created repository
    • Click Edit
    • Introduce yourself, describe why you’ve joined GitHub, what you’re hoping to do and what you’d like to learn from the development community. Encourage them to leave feedback through issues on the repository.

Sample text for your README.md:

# City of Gotham Feedback
We've just joined GitHub and want to know what data would be interesting to our development community?
Leave us comments via issues!

Open source a Dataset

Open sourcing a dataset can be as simple as uploading a .csv to GitHub and letting people know about it. Rather than publishing data as a zip file on your website or an FTP server, you can add the files through the GitHub.com web interface, or via the GitHub for Windows or GitHub for Mac native clients. Create a new repository to store your datasets – in many cases, it’s as easy as drag, drop, sync.
GitHub can host any file type (although open, non-binary files like .csvs tend to work best). Plus, GitHub supports rendering certain open data formats interactively such as the popular geospacial .geojson format. Once uploaded, citizens can view the files, and can even open issues or submit pull requests with proposed fixes.

Explore Open Source Civic Apps

There are many open source applications freely available on GitHub that were built just for government. Check them out, and see if it fits a need. Here are some examples:

  • Adopt-a – This open source web app was created for the City of Boston in 2011 by Code for America fellows. It allows residents to “adopt” a hydrant and make sure it’s clear of snow in the winter so that emergency crews can locate them when needed. It has since been adopted in Chicago (for sidewalks), Seattle (for storm drains), and Honolulu (for tsunami sirens).
  • StreetMix – Another creation of Code for America fellows (2013) this website, www.streetmix.net, allows anyone to create street sections in a way that is not only beautiful but educational, too. No downloading, no installing, no paying – make and save your creations right at the website. Great for internal or public community planning meetings.
  • We The PeopleWe The People, the White House’s petitions application hosted at petitions.whitehouse.gov is a Drupal module to allow citizens to submit and digitally sign petitions.

Open source something small

Chances are you’ve got something small you can open source. Check in with your web or new media team, and see if they’ve got something they’ve been dying to share or blog about, no matter how small. It can be snippet of analytics code, or maybe a small script used internally. It doesn’t even have to be code.
Post your website’s privacy policy, comment moderation policy, or terms of service and let the community weigh in before your next edit. No matter how small it is, getting your first open source project going is a great first step.

Improve an existing project

Does you agency use an existing open source project to conduct its own business? Open an issue on the project’s repository with a feature request or a bug you spot. Better yet, fork the project, and submit your improvements. Even if it’s one or two lines of code, such examples are great to blog about to showcase your efforts.
Don’t forget, this site is an open source project, too. Making an needed edit is another great way to get started.”

And Data for All: On the Validity and Usefulness of Open Government Data


Paper presented at the the 13th International Conference on Knowledge Management and Knowledge Technologies: “Open Government Data (OGD) stands for a relatively young trend to make data that is collected and maintained by state authorities available for the public. Although various Austrian OGD initiatives have been started in the last few years, less is known about the validity and the usefulness of the data offered. Based on the data-set on Vienna’s stock of trees, we address two questions in this paper. First of all, we examine the quality of the data by validating it according to knowledge from a related discipline. It shows that the data-set we used correlates with findings from meteorology. Then, we explore the usefulness and exploitability of OGD by describing a concrete scenario in which this data-set can be supportive for citizens in their everyday life and by discussing further application areas in which OGD can be beneficial for different stakeholders and even commercially used.”

Choose Your Own Route on Finland's Algorithm-Driven Public Bus


Brian Merchant at Motherboard: “Technology should probably be transforming public transit a lot faster than it is. Yes, apps like Hopstop have made finding stops easier and I’ve started riding the bus in unfamiliar parts of town a bit more often thanks to Google Maps’ route info. But these are relatively small steps, and it’s all limited to making scheduling information more widely available. Where’s the innovation on the other side? Where’s the Uber-like interactivity, the bus that comes to you after a tap on the iPhone?
In Finland, actually. The Kutsuplus is Helsinki’s groundbreaking mass transit hybrid program that lets riders choose their own routes, pay for fares on their phones, and summon their own buses. It’s a pretty interesting concept. With a ten minute lead time, you summon a Kutsuplus bus to a stop using the official app, just as you’d call a livery cab on Uber. Each minibus in the fleet seats at least nine people, and there’s room for baby carriages and bikes.
You can call your own private Kutsuplus, but if you share the ride, you share the costs—it’s about half the price of a cab fare, and a dollar or two more expensive than old school bus transit. You can then pick your own stop, also using the app.
The interesting part is the scheduling, which is entirely automated. If you’re sharing the ride, an algorithm determines the most direct route, and you only get charged as though you were riding solo. You can pay with a Kutsuplus wallet on the app, or, eventually, bill the charge to your phone bill.”