The Gift of Generalized Exchange

by Ira Nayman

In times of hyper-capitalism, where everything is naturally seen as for sale, the idea that anybody does anything without expectation of financial compensation is considered absurd. Where examples exist, they are first explained away, then, if possible, brought into the market economy. To the extent that exchange happens outside the money economy, it detracts from economic efficiency (and the carefully calculated numbers of economists). The Internet is an example of this problem. Many writers, graphic artists, designers, programmers and others create things that are shared without money changing hands. What motivates them to do this?

Ego, say traditional economists: they can show off their intellectual abilities, or, perhaps, that they are good people who know how to share. Not so, say others: the Internet is an example of a gift economy. Howard Rheingold, in Virtual Communities, was one of the first writers to make the connection between digital communications and gift exchange; since then, it has been repeated in the popular press so often, the connection is taken for granted. We freely circulate information on the Internet in the expectation that we will benefit from the information freely circulated by others.

There’s only one problem: gift economies don’t work this way. In traditional anthropological studies, gifts are given on ceremonial occasions to members of one’s tribe, or the tribe of somebody else to which one wants to affiliate. At weddings, to take one example, there can be a complex arrangement of gift giving between various members of the two families involved. Although somewhat altered, gift giving at occasions such as weddings and birthdays remains a common practice.

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