Welcome! These forums will be deactivated by the end of this year. The conversation continues in a new morph over on Discord! Please join us there for a more active conversation and the occasional opportunity to ask developers questions directly! Go to the PS+ Discord Server.

Corporate dominance

4 posts / 0 new
Last post
nezumi.hebereke nezumi.hebereke's picture
Corporate dominance
Imagine an alien, Fox once said, who's come here to identify the planet's dominant form of intelligence. The alien has a look, then chooses. What do you think he picks? I probably shrugged. The zaibatsus, Fox said, the multinationals. The blood of a zaibatsu is information, not people. The structure is independent of the individual lives that comprise it. Corporation as life form. - New Rose Hotel Most hypercorps are decentralized, non-asset based legal entities. Complete automation, advanced robotics, morph technology, and cornucopia machines allow the hypercorps to abstain from mass employment for labor or production services. - Eclipse Phase Megacorporation - It refers to a fictional corporation that is a massive conglomerate, holding monopolistic or near-monopolistic control over multiple markets (thus exhibiting both a horizontal and a vertical monopoly). Megacorps are so powerful that they can ignore the law, possess their own heavily-armed (often military-sized) private armies, hold 'sovereign' territory, and possibly even act as outright governments. They often exercise a large degree of control over their employees, taking the idea of 'corporate culture' to an extreme. - Wikipedia We can safely assume that there are hundreds of thousands of registered and unregistered corporate entities, most of which are no more than someone owning some information or equipment or making decisions with the goal of making profit. However, we still see the few giant corporations, the "transnational megacorp dinosaurs". A significant percentage of the colonies and habitats detailed in Sunward are nothing more than company towns - every service, every product, every job, is provided by, for and through the company. In these cases, the corporation is the government, provides the military, owns sovereign territory, and creates horizontal monopolies to supply their vertical profit-base. The simple fact is, in a universe which is inherently hostile to transhuman life, the only way that new frontiers will be opened is by motivated organizations bringing tremendous resources to bear, presumably driven by their own self-interest - a situation which necessitates profit-driven 'megacorporations' over the tiny, 'lithe' corporations or individuals. Right now the megacorps have been taken a step back for a few reasons - the collapse of Earth-centric economics, and of major economic bases throughout the solar system, the lack of cheap FTL communication, and a transitioning politico-economic situation. But these would all appear to be temporary concerns, and when they fall away, the megacorporate idea becomes not only tenable, but more efficient than it was back on Earth, where the shipment of goods was relatively cheap. What can we anticipate in the future? The most successful habitats are those that have the fewest possible points of error - where they rely the least on unreliable third parties, and have the most control over their own necessary functions. They are those with the most resources available to make the location efficient and habitable, and to enforce local stability. They are those with sufficient power to defend themselves from external predators and threats (such as foreign governments and Firewall), and those which are streamlined enough to produce goods and use resources efficiently. The cost of transmission of information and goods between space mean that each habitat or habitat cluster will need to evolve to operate relatively independent of the whole. Rather than the classic megacorp monolith, it will be a series of independent children corps creating a corporate ecosystem - ideal for evolution of advanced corporate structures. I feel like I'm missing a step from this to the next point. But we are dealing with systems confined to basic rules, operating with a huge number of individual functions, a high rate of mutation, competitively driven. It seems like, within the next ten to forty years, Eclipse Phase is creating the perfect environment for proper corporate emergence - the creation of a heretofore nearly unpredictable complex network from a set of relatively simple interactions. The next form of transcendence may not be biological at all - except insofar that transhumanity makes up the neurons and cells of the corporate brain.
Arenamontanus Arenamontanus's picture
Re: Corporate dominance
nezumi.hebereke wrote:
The most successful habitats are those that have the fewest possible points of error - where they rely the least on unreliable third parties, and have the most control over their own necessary functions. They are those with the most resources available to make the location efficient and habitable, and to enforce local stability.
Look at biology: there are plenty of different ways of solving the problems of life. You can aim at a low-error strategy, where a few offspring take lots of resources to raise and have a high chance of survival (a "K-strategy" in ecology parlance). Or you can have a lot of cheap offspring and count on that some will survive (a "r-strategy"). Long-lived organisms pay for a lot of DNA repair and immune system, short-lived organisms use the resources for reproduction and take advantage of the rapid adaptation the mutations can give. In terms of sheer biomass and number of species it is the small and r-strategy organisms that dominate. It is not at all clear that the company town habitat protected by a powerful megacorp will survive better than the diverse aggregation with an economy composed of many corps. Some threats and opportunities are best dealt with by rapid adaptation, reorganisation and competition - for example ongoing technological and demographic change. The unified habitat might be very well protected against an invader, but due to its monoculture also vulnerable to a meme or software virus the diverse habitat will not succumb to. In a world where the threats are uncertain it is risky to put all your eggs in the same basket, and the rational strategy is to have several options - this is why culture experimentation is so important in EP. It is not just fashion, it is exploration in order to further survival.
Quote:
Rather than the classic megacorp monolith, it will be a series of independent children corps creating a corporate ecosystem - ideal for evolution of advanced corporate structures.
Hans Moravec also discussed "excorporations" in his book "Robot: from mere machine to transcendent mind". He suggested corporations that had no employees at all, just AI and robots. In EP one could imagine the founders setting up an AGI system with "increase shareholder profit" as the prime goal, give it capital and resources (such as a business plan) and then allow it to run the company. The AGI might hire people, buy AIs and services and start making money. Some money is returned to the investors, the rest used to expand the company (including possibly splitting it, if that increases profit as estimated by the system). Conversely a corporation might go the other way around, retiring or firing all employees until only the legal structure, capital and control mechanisms remain so that they can act with maximal efficiency.
Quote:
I feel like I'm missing a step from this to the next point. But we are dealing with systems confined to basic rules, operating with a huge number of individual functions, a high rate of mutation, competitively driven. It seems like, within the next ten to forty years, Eclipse Phase is creating the perfect environment for proper corporate emergence - the creation of a heretofore nearly unpredictable complex network from a set of relatively simple interactions. The next form of transcendence may not be biological at all - except insofar that transhumanity makes up the neurons and cells of the corporate brain.
Ob SF reference: Economy 2.0 in Charles Stross' "Accelerando". Yes, I think excorporate entities might be one of the possibilities in the near future of EP. The setting has all the tools to undergo a radical economic phase transition due to copyable transhuman capital (forks, skillsofts, AI), and technologies that allow new forms of wide integration and coordination are appearing in the wings (everything from hive minds to social engineering to new forms of business thinking to FTL communication). Combined they might enable some very alien and powerful corporate intelligences. The autonomists are racing in this direction just as much as the hyperliberals, although they pursue a slightly different architecture.
Extropian
nezumi.hebereke nezumi.hebereke's picture
Re: Corporate dominance
Arenamontanus wrote:
It is not at all clear that the company town habitat protected by a powerful megacorp will survive better than the diverse aggregation with an economy composed of many corps.
The only difference here is, because of the extreme hostility of the environment, you can't simply keep sending people down to say the surface of Mercury holding a business plan and hope some of them will survive. Comparing the survivability to what on Earth is a logical error. It takes a *tremendous* amount of energy and resources to make a functional habitat on 99% of surface area of the solar system. The high cost of entry already eliminates the r-strategy in most situations.
Arenamontanus Arenamontanus's picture
Re: Corporate dominance
Just saw this article about bizarre traces of robot traders, essentially financial crop circles. There are already strange emergent systems hiding in the market...
nezumi.hebereke wrote:
The only difference here is, because of the extreme hostility of the environment, you can't simply keep sending people down to say the surface of Mercury holding a business plan and hope some of them will survive. Comparing the survivability to what on Earth is a logical error. It takes a *tremendous* amount of energy and resources to make a functional habitat on 99% of surface area of the solar system. The high cost of entry already eliminates the r-strategy in most situations.
Good point about the high cost of entry. But while the solar system is pretty hostile, the technology of EP makes it significantly less hostile, especially if you can adapt to a niche. Once the problem of how to build an asteroid habitat has been solved well enough, anybody with a CM and the right library of skills and blueprints can build and live there. It does take an initial investment that is higher than it looks (you can buy equipment, but it is hard to buy competent use of equipment), but it is still orders of magnitude cheaper than developing the tools that enabled it. I think real barriers to entry are less and less material and more and more conceptual/skills/capital: you need enormous resources to develop an entirely new technology. Once developed you will benefit from a near monopoly for a while, but then the cheap copies will arrive. This is likely another reason for the PC: coordinated attempts to create new profitable technologies and protect them from losing value rapidly. Back to the r and K strategies. In some businesses there are "natural monopolies" that might favour bigger players, in others the balance is the opposite. What EP techs seem to have a natural monopoly tendency? Manufacturing has economies of scale for making big bulk stuff, but fabbing has removed it for all the small stuff. Utilities tend towards monopolies. Making habitats might hence tend towards oligopolies, but that is separate from what habitats are actually used for: you could have HabCorp own and run the habitat, but the business inside merely pays the rent. Control over natural resources has diminished in importance (if you have fabbing, crude matter and energy, most things can be made), with a few exceptions - the Jovians might be exploiting some to maintain their position at least within their system. The fragmented society of EP also prevents bureaucracy-based monopolies from forming, since they only work within a particular polity. Similarly the framented Mesh prevents things like search monopolies. So it seems to me that the current situation effectively forces corporations to be competitive. A unified solar system might allow the formation of more massive exacorps, but that also looks somewhat remote right now.
Extropian