Trust, Control, and the Economics of Governance


Book by Philipp Herold: “In today’s world, we cooperate across legal and cultural systems in order to create value. However, this increases volatility, uncertainty, complexity, and ambiguity as challenges for societies, politics, and business. This has made governance a scarce resource. It thus is inevitable that we understand the means of governance available to us and are able to economize on them. Trends like the increasing role of product labels and a certification industry as well as political movements towards nationalism and conservatism may be seen as reaction to disappointments from excessive cooperation. To avoid failures of cooperation, governance is important – control through e.g. contracts is limited and in governance economics trust is widely advertised without much guidance on its preconditions or limits.

This book draws on the rich insight from research on trust and control, and accommodates the key results for governance considerations in an institutional economics framework. It provides a view on the limits of cooperation from the required degree of governance, which can be achieved through extrinsic motivation or building on intrinsic motivation. Trust Control Economics thus inform a more realistic expectation about the net value added from cooperation by providing a balanced view including the cost of governance. It then becomes clear how complex cooperation is about ‘governance accretion’ where limited trustworthiness is substituted by control and these control instances need to be governed in turn.

Trust, Control, and the Economics of Governance is a highly necessary development of institutional economics to reflect progress made in trust research and is a relevant addition for practitioners to better understand the role of trust in the governance of contemporary cooperation-structures. It will be of interest to researchers, academics, and students in the fields of economics and business management, institutional economics, and business ethics….(More)”.

Report on Algorithmic Risk Assessment Tools in the U.S. Criminal Justice System


Press release: “The Partnership on AI (PAI) has today published a report gathering the views of the multidisciplinary artificial intelligence and machine learning research and ethics community which documents the serious shortcomings of algorithmic risk assessment tools in the U.S. criminal justice system. These kinds of AI tools for deciding on whether to detain or release defendants are in widespread use around the United States, and some legislatures have begun to mandate their use. Lessons drawn from the U.S. context have widespread applicability in other jurisdictions, too, as the international policymaking community considers the deployment of similar tools.

While criminal justice risk assessment tools are often simpler than the deep neural networks used in many modern artificial intelligence systems, they are basic forms of AI. As such, they present a paradigmatic example of the high-stakes social and ethical consequences of automated AI decision-making….

Across the report, challenges to using these tools fell broadly into three primary categories:

  1. Concerns about the accuracy, bias, and validity in the tools themselves
    • Although the use of these tools is in part motivated by the desire to mitigate existing human fallibility in the criminal justice system, this report suggests that it is a serious misunderstanding to view tools as objective or neutral simply because they are based on data.
  2. Issues with the interface between the tools and the humans who interact with them
    • In addition to technical concerns, these tools must be held to high standards of interpretability and explainability to ensure that users (including judges, lawyers, and clerks, among others) can understand how the tools’ predictions are reached and make reasonable decisions based on these predictions.
  3. Questions of governance, transparency, and accountability
    • To the extent that such systems are adapted to make life-changing decisions, tools and decision-makers who specify, mandate, and deploy them must meet high standards of transparency and accountability.

This report highlights some of the key challenges with the use of risk assessment tools for criminal justice applications. It also raises some deep philosophical and procedural issues which may not be easy to resolve. Surfacing and addressing those concerns will require ongoing research and collaboration between policymakers, the AI research community, civil society groups, and affected communities, as well as new types of data collection and transparency. It is PAI’s mission to spur and facilitate these conversations and to produce research to bridge such gaps….(More)”

Politics and Technology in the Post-Truth Era


Book edited by Anna Visvizi and Miltiadis D. Lytras: “Advances in information and communication technology (ICT) have directly impacted the way in which politics operates today. Bringing together research on Europe, the US, South America, the Middle East, Asia and Africa, this book examines the relationship between ICT and politics in a global perspective.

Technological innovations such as big data, data mining, sentiment analysis, cognitive computing, artificial intelligence, virtual reality, augmented reality, social media and blockchain technology are reshaping the way ICT intersects with politics and in this collection contributors examine these developments, demonstrating their impact on the political landscape. Chapters examine topics such as cyberwarfare and propaganda, post-Soviet space, Snowden, US national security, e-government, GDPR, democratization in Africa and internet freedom.


Providing an overview of new research on the emerging relationship between the promise and potential inherent in ICT and its impact on politics, this edited collection will prove an invaluable text for students, researchers and practitioners working in the fields of Politics, International Relations and Computer Science…..(More)”

Introducing the Contractual Wheel of Data Collaboration


Blog by Andrew Young and Stefaan Verhulst: “Earlier this year we launched the Contracts for Data Collaboration (C4DC) initiative — an open collaborative with charter members from The GovLab, UN SDSN Thematic Research Network on Data and Statistics (TReNDS), University of Washington and the World Economic Forum. C4DC seeks to address the inefficiencies of developing contractual agreements for public-private data collaboration by informing and guiding those seeking to establish a data collaborative by developing and making available a shared repository of relevant contractual clauses taken from existing legal agreements. Today TReNDS published “Partnerships Founded on Trust,” a brief capturing some initial findings from the C4DC initiative.

The Contractual Wheel of Data Collaboration [beta]

The Contractual Wheel of Data Collaboration [beta] — Stefaan G. Verhulst and Andrew Young, The GovLab

As part of the C4DC effort, and to support Data Stewards in the private sector and decision-makers in the public and civil sectors seeking to establish Data Collaboratives, The GovLab developed the Contractual Wheel of Data Collaboration [beta]. The Wheel seeks to capture key elements involved in data collaboration while demystifying contracts and moving beyond the type of legalese that can create confusion and barriers to experimentation.

The Wheel was developed based on an assessment of existing legal agreements, engagement with The GovLab-facilitated Data Stewards Network, and analysis of the key elements of our Data Collaboratives Methodology. It features 22 legal considerations organized across 6 operational categories that can act as a checklist for the development of a legal agreement between parties participating in a Data Collaborative:…(More)”.

Drones to deliver medicines to 12m people in Ghana


Neil Munshi in the Financial Times: “The world’s largest drone delivery network, ferrying 150 different medicines and vaccines, as well as blood, to 2,000 clinics in remote parts of Ghana, is set to be announced on Wednesday.

The network represents a big expansion for the Silicon Valley start-up Zipline, which began delivering blood in Rwanda in 2016 using pilotless, preprogrammed aircraft. The move, along with a new agreement in Rwanda signed in December, takes the company beyond simple blood distribution to more complicated vaccine and plasma deliveries.

“What this is going to show is that you can reach every GPS co-ordinate, you can serve everybody,” said Keller Rinaudo, Zipline chief executive. “Every human in that region or country [can be] within a 15-25 minute delivery of any essential medical product — it’s a different way of thinking about universal coverage.”

Zipline will deliver vaccines for yellow fever, polio, diptheria and tetanus which are provided by the World Health Organisation’s Expanded Project on Immunisation. The WHO will also use the company’s system for future mass immunisation programmes in Ghana.

Later this year, Zipline has plans to start operations in the US, in North Carolina, and in south-east Asia. The company said it will be able to serve 100m people within a year, up from the 22m that its projects in Ghana and Rwanda will cover.

In Ghana, Zipline said health workers will receive deliveries via a parachute drop within about 30 minutes of placing their orders by text message….(More)”.

Technology-facilitated Societal Consensus


Paper by Timotheus Kampik and Amro Najjar: “The spread of radical opinions, facilitated by homophilic Internet communities (echo chambers), has become a threat to the stability of societies around the globe. The concept of choice architecture–the design of choice information for consumers with the goal of facilitating societally beneficial decisions–provides a promising (although not uncontroversial) general concept to address this problem.

The choice architecture approach is reflected in recent proposals advocating for recommender systems that consider the societal impact of their recommendations and not only strive to optimize revenue streams.

However, the precise nature of the goal state such systems should work towards remains an open question. In this paper, we suggest that this goal state can be defined by considering target opinion spread in a society on different topics of interest as a multivariate normal distribution; i.e., while there is a diversity of opinions, most people have similar opinions on most topics. We explain why this approach is promising, and list a set of crossdisciplinary research challenges that need to be solved to advance the idea….(More)”.

How Recommendation Algorithms Run the World


Article by Zeynep Tufekci: “What should you watch? What should you read? What’s news? What’s trending? Wherever you go online, companies have come up with very particular, imperfect ways of answering these questions. Everywhere you look, recommendation engines offer striking examples of how values and judgments become embedded in algorithms and how algorithms can be gamed by strategic actors.

Consider a common, seemingly straightforward method of making suggestions: a recommendation based on what people “like you” have read, watched, or shopped for. What exactly is a person like me? Which dimension of me? Is it someone of the same age, gender, race, or location? Do they share my interests? My eye color? My height? Or is their resemblance to me determined by a whole mess of “big data” (aka surveillance) crunched by a machine-learning algorithm?

Deep down, behind every “people like you” recommendation is a computational method for distilling stereotypes through data. Even when these methods work, they can help entrench the stereotypes they’re mobilizing. They might easily recommend books about coding to boys and books about fashion to girls, simply by tracking the next most likely click. Of course, that creates a feedback cycle: If you keep being shown coding books, you’re probably more likely to eventually check one out.

Another common method for generating recommendations is to extrapolate from patterns in how people consume things. People who watched this then watched that; shoppers who purchased this item also added that one to their shopping cart. Amazon uses this method a lot, and I admit, it’s often quite useful. Buy an electric toothbrush? How nice that the correct replacement head appears in your recommendations. Congratulations on your new vacuum cleaner: Here are some bags that fit your machine.

But these recommendations can also be revealing in ways that are creepy. …

One final method for generating recommendations is to identify what’s “trending” and push that to a broader user base. But this, too, involves making a lot of judgments….(More)”.

The Importance of Data Access Regimes for Artificial Intelligence and Machine Learning


JRC Digital Economy Working Paper by Bertin Martens: “Digitization triggered a steep drop in the cost of information. The resulting data glut created a bottleneck because human cognitive capacity is unable to cope with large amounts of information. Artificial intelligence and machine learning (AI/ML) triggered a similar drop in the cost of machine-based decision-making and helps in overcoming this bottleneck. Substantial change in the relative price of resources puts pressure on ownership and access rights to these resources. This explains pressure on access rights to data. ML thrives on access to big and varied datasets. We discuss the implications of access regimes for the development of AI in its current form of ML. The economic characteristics of data (non-rivalry, economies of scale and scope) favour data aggregation in big datasets. Non-rivalry implies the need for exclusive rights in order to incentivise data production when it is costly. The balance between access and exclusion is at the centre of the debate on data regimes. We explore the economic implications of several modalities for access to data, ranging from exclusive monopolistic control to monopolistic competition and free access. Regulatory intervention may push the market beyond voluntary exchanges, either towards more openness or reduced access. This may generate private costs for firms and individuals. Society can choose to do so if the social benefits of this intervention outweigh the private costs.

We briefly discuss the main EU legal instruments that are relevant for data access and ownership, including the General Data Protection Regulation (GDPR) that defines the rights of data subjects with respect to their personal data and the Database Directive (DBD) that grants ownership rights to database producers. These two instruments leave a wide legal no-man’s land where data access is ruled by bilateral contracts and Technical Protection Measures that give exclusive control to de facto data holders, and by market forces that drive access, trade and pricing of data. The absence of exclusive rights might facilitate data sharing and access or it may result in a segmented data landscape where data aggregation for ML purposes is hard to achieve. It is unclear if incompletely specified ownership and access rights maximize the welfare of society and facilitate the development of AI/ML…(More)”

Crowdsourcing in medical research: concepts and applications


Paper by Joseph D. Tucker, Suzanne Day, Weiming Tang, and Barry Bayus: “Crowdsourcing shifts medical research from a closed environment to an open collaboration between the public and researchers. We define crowdsourcing as an approach to problem solving which involves an organization having a large group attempt to solve a problem or part of a problem, then sharing solutions. Crowdsourcing allows large groups of individuals to participate in medical research through innovation challenges, hackathons, and related activities. The purpose of this literature review is to examine the definition, concepts, and applications of crowdsourcing in medicine.

This multi-disciplinary review defines crowdsourcing for medicine, identifies conceptual antecedents (collective intelligence and open source models), and explores implications of the approach. Several critiques of crowdsourcing are also examined. Although several crowdsourcing definitions exist, there are two essential elements: (1) having a large group of individuals, including those with skills and those without skills, propose potential solutions; (2) sharing solutions through implementation or open access materials. The public can be a central force in contributing to formative, pre-clinical, and clinical research. A growing evidence base suggests that crowdsourcing in medicine can result in high-quality outcomes, broad community engagement, and more open science….(More)”

Five myths about whistleblowers


Dana Gold in the Washington Post: “When a whistleblower revealed the Trump administration’s decision to overturn 25 security clearance denials, it was the latest in a long and storied history of insiders exposing significant abuses of public trust. Whistles were blown on U.S. involvement in Vietnam, the Watergate coverupEnron’s financial fraud, the National Security Agency’s mass surveillance of domestic electronic communications and, during the Trump administration, the corruption of former Environmental Protection Agency chief Scott Pruitt , Cambridge Analytica’s theft of Facebook users’ data to develop targeted political ads, and harm to children posed by the “zero tolerance” immigration policy. Despite the essential role whistleblowers play in illuminating the truth and protecting the public interest, several myths persist about them, some pernicious.

MYTH NO. 1 Whistleblowers are employees who report problems externally….

MYTH NO. 2 Whistleblowers are either disloyal or heroes….

MYTH NO. 3 ‘Leaker’ is another term for ‘whistleblower.’…

MYTH NO. 4 Remaining anonymous is the best strategy for whistleblowing….

MYTH NO. 5 Julian Assange is a whistleblower….(More)”.