The rise of social reputation systems

Social media is driving a ‘gift shift’ through the cultural fabric of our societies. Social reputation systems are one expression of the shift. They have immense disruptive potential.

If you are new to reputation systems, check out this piece in Wired by Rachel Botsman, who is writing a book on the topic. You might also read this post for the In the Room blog.

Examples of reputation systems:


What do reputation systems measure?

1. Identity — is this person a real person? Are they are who they say they are?
2. Character — consistency of behaviour (for ex. reliability and helpfulness) over time
3. Trustworthiness — essential for the P2P economy

The neurological basis of ‘reputation capital’:

Botsman writes: ‘Norihiro Sadato, a researcher at the National Institute for Physiological Sciences in Aichi, Japan, along with a team of colleagues, wanted to determine whether we think about reputation and money in the same way, by mapping the neural response to different rewards.

Sadato devised an experiment: participants were told they were playing a simple gambling game, in which one of three cards would result in a cash payout. Using functional magnetic resonance imaging, the researchers monitored brain activity triggered when the subjects received a monetary reward. When the subjects returned on the second day, they were each shown a picture of their face, with a one-word descriptor underneath that a panel of strangers had supposedly written about them. Some of the descriptions were positive, such as “trustworthy”, others neutral, such as “patient”, and others negative. When participants heard they had a positive reputation, a part of the brain, the striatum, lit up.

The same part would also light up if they had won money. As Sadato puts it: “The implication of our study is that different types of reward are coded by the same currency system.” In other words, our brains neurologically compute personal reputation to be as valuable as money’.

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The family history of Facebook: how social media will change the world

I’m fascinated by social media. My Gen X friends can’t understand it. Most of them are too busy struggling with families and careers to spend time glued to Facebook and Twitter. For them, social media is a time suck, at best, at worst a gross invasion of privacy. When I tell my friends that I’m teaching on social media, I get one of two reactions. Either they leer conspiratorially, as if to say: ‘Lucrative. Smart!’, or they smile sympathetically, as if say: ‘It must be tough being a philosopher, having to root around for trendy topics to keep people interested’.

Love them as I do, my Gen X friends don’t understand social media at all. They don’t understand social media, so they don’t understand what social media is doing to us in this moment in history. They don’t understand what social media is doing to us, so they don’t understand the historical importance of social media. They don’t understand the historical importance of social media, so they don’t understand why I am obsessed with the medium itself.

It is time that I laid my cards on the table. I am a social philosopher. I am interested in social and cultural change. I believe that social media is the catalyst for cultural change in the world today. As such, it is probably more important than anything else you could care to mention. [Read more…]