Decision Making as Output and Bounded Rationality

  The classical economics theories proceed on the assumption of rational agents. Rationality implies the economic agents undertake actions or exercise choices based on the cost-benefit analysis they undertake. The assumption further posits that there exists no information asymmetry and thus the agent is aware of all the costs and benefits associated with the choice he or she has exercised. The behavioral school contested the decision stating the decisions in practice are often irrational. Implied there is a continuous departure from rationality. Rationality in the views of the behavioral school is more an exception to the norm rather a rule. The past posts have discussed the limitations of this view by the behavioral school. Economics has often posited rationality in the context in which the choices are exercised rather than theoretical abstract view of rational action. Rational action in theory seems to be grounded in zero restraint situation yet in practice, there are numerous restra

Trump, Twitter and Intermediate Liability-

In 2012, there were bills with identical objectives introduced in both houses of the US Congress. One was the Stop Piracy Bill (SOPA) while the other was Protection of Intellectual Property Bill (PIPA). Entertainment and publishing firms were demanding an end to piracy which seemed to be major headache in increasing revenues. The culprits were ostensibly the online platforms that had mushroomed all over. The platforms included YouTube, Facebook, Twitter among others. However, it was YouTube which seem to host maximum pirated videos. The proposals for these legislations was to hold these platforms accountable for hosting the pirated content.

 

Unsurprisingly there was a huge uproar by these platforms. The platforms claimed they were merely the repositories of user generated content and do not claim responsibility for the authenticity of the content. They claimed that given the traffic on their sites, it was all but impossible to monitor each and every content. Any content flagged as inappropriate would perhaps be policed if it violates piracy norms. The backlash from the technology firms caught everyone by surprise. They were least expected to face such a backlash. The entertainment and media companies beat a hasty retreat. The platforms had claimed refuge and with success under safe harbour rules.

 

Under safe harbour rules, the platforms are not responsible for the content posted on their sites. The law in the US reads as “No provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider”. This is the singular important factor that has led to rapid growth in social media in particular and internet in general. These safe harbour principles protect these technology intermediaries or platforms from the liabilities arising out of the action of the third party content producers or providers.

 

The law distinguishes the platforms of the technology intermediaries from the media. The media is something that publishes and thus the right to censor content exists. The platforms do not publish. They merely are spaces for the third party content producers to post their material for dissemination. The platforms do not have the resources to judge the content. Even if the resources exist, given the very nature of the platforms, they are not supposed to interfere in the posting of the content. In case of objectionable content, they can intervene on the complaints of other users. However, suo moto censoriship of content is frowned upon unless it perhaps involves revenge porn or incitement of hate leading to violence or direct incitement of violence etc.

 

However, over the years, these platforms have used these safeguards for their convenience. Each platform run by a management will perhaps have its own bias and anything contrary is acted upon. Anything that goes contrary to their philosophy is sought to be blocked. Yet these blocks have been very selective.  In India, many a times, the internet right has found itself on the wrong side of Twitter, with their accounts getting suspended or temporarily blocked. Many YouTube videos find themselves taken off apparently under the guise of offending someone. Yet these takedowns or punitive actions are perceived as selective. In recent days, YouTube has apparently taken off videos that were deemed to be anti-China. The YouTube’s explanation that is was a software flaw that led to the takedown find hardly any takers. In fact many pro-China videos are given mileage despite offensive content on many platforms. On Twitter, while pro-India accounts find themselves at the receiving end, the pro-Pakistani handles often mouthing inflammatory content on India and the Hindus seem to get a free pass.

 

Despite, the apparent bias on the part of the platform to cater to certain ideologies or schools of thoughts, the authorities have generally remained quiet barring occasional noises or subtle threats. This has led to these platforms to emerge as sort of media firms. Furthermore, they seem to think themselves as their actions reveal as arbiter of truth.  Implied is the post truth is the monopoly of the social media platforms. The Wikipedia is of course a media platform given the editorial moderation that is exercised. As a matter of fact, Wikipedia is again to know harbour biases. Its founder Jimmy Wales is of the centre-left persuasion. Anything contrary and indicative of conservative thought does invite instant editing. It is more prominent among the Wiki editors of India among others. There is tendency to be woke despite alleged neutral stand stated by the Wiki manifesto.

 

The climax of this acting as media while pretending to be intermediary platforms came a day or two back when Twitter decided to attach fact-checker against President Trump’s Twitter handle. Implied was the assertions by Trump were not normally true and before one accepts them, there needs to be fact check. This no doubt has enraged President Trump. The same methodology is not applied to handles of Democrat persuasion or those handles from China. China peddling falsehood has caught the world in one of the most severe health crisis it has ever landed up in. Yet China has gone scot-free and given a free pass. Twitter head Jack Dorsey is antagonistic to Trump and thus the actions have to be seen in the context. Moreover, it is an attempt by Twitter to influence the voters in the run up to the November Presidential elections. Twitter by arrogating itself to arbiter of truth on content it deems contrary to its stand has decided to convert itself into a media platform. It is a de facto conversion while pretending to technology intermediary.

The retribution might be on the expected lines. President Trump who has been hinting at measures for conservative reclaiming of the social media platforms will in all probability sign an executive order against the firms. The order in all probability will withdraw the safe harbour safeguards that have protected the technology platforms for intermediary liability all these days. Yet this will come at a price. The rapid spread of the net through the technology intermediary platforms will perhaps grind to a halt. The battle will not something be of short haul but could carry its way to the US Supreme Court, which is interestingly dominated by the Republicans.

 

The battles between the tech industry and President Trump for varying reasons has created situation wherein the industry has shed its pretensions of neutrality and want to take on the President. The President will naturally hit back. The government with the resources in hand will naturally have sufficient levers. It does have leverage over the points of control. The government technology industry battles and the models underlying it have been discussed in an earlier post albeit in a different context. The state preferences in the current context seem unambiguous. It is about the will to exert the points of control to the logical conclusion. Similar actions might follow across Europe, India and other parts of the world. The internet as we know it might soon die. The issue for the sake of the intenet growth and diffusion has to be sorted. Yet the arrogance of the Big Tech has to be called out. Given their preponderance in information production and thus their role in narrative setting, they are taking on the oldest institution, the state. Companies have exerted significant influence on the state as numerous instances of regulatory capture have demonstrated. This is an attempt more so of the ideological differences taken to an altogether new level in a democracy. The backlash is only to be expected. How it turns out will determine the future of conversation.

 


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