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Re-engineering of Markets | Neil Gaikwad | TEDxBeaconStreet


so we are living in fascinating era of

so we are living in fascinating era of artificial intelligence

artificial intelligence

artificial intelligence when these technologies are becoming

when these technologies are becoming

when these technologies are becoming ubiquitous in our lives we should ask

ubiquitous in our lives we should ask

ubiquitous in our lives we should ask some serious questions beyond just

some serious questions beyond just

some serious questions beyond just pattern recognitions this technology’s

pattern recognitions this technology’s

pattern recognitions this technology’s fail to be empathetic towards human

fail to be empathetic towards human

fail to be empathetic towards human being they don’t understand what it

being they don’t understand what it

being they don’t understand what it means to be fair and they have no notion

means to be fair and they have no notion

means to be fair and they have no notion of equality so people raised so many

of equality so people raised so many

of equality so people raised so many questions about ethics of artificial

questions about ethics of artificial

questions about ethics of artificial intelligence in MIT Media Lab my work

intelligence in MIT Media Lab my work

intelligence in MIT Media Lab my work revolves around how can we envision

revolves around how can we envision

revolves around how can we envision future that machines and humans can work

future that machines and humans can work

future that machines and humans can work together they can trust each other but

together they can trust each other but

together they can trust each other but then what do we mean by trust in what we

then what do we mean by trust in what we

then what do we mean by trust in what we trust we can’t even trust our social

trust we can’t even trust our social

trust we can’t even trust our social organisations our markets I want to take

organisations our markets I want to take

organisations our markets I want to take you to the three amazing places in the

you to the three amazing places in the

you to the three amazing places in the world first we go to Western Ghats of

world first we go to Western Ghats of

world first we go to Western Ghats of India it is one of the most biodiverse

India it is one of the most biodiverse

India it is one of the most biodiverse place on the planet Earth on the west

place on the planet Earth on the west

place on the planet Earth on the west side of it you see Arabian Sea and as

side of it you see Arabian Sea and as

side of it you see Arabian Sea and as this mountain clouds gather farmers in

this mountain clouds gather farmers in

this mountain clouds gather farmers in India start preparing their land this is

India start preparing their land this is

India start preparing their land this is just a small land it’s one hectare of

just a small land it’s one hectare of

just a small land it’s one hectare of land that these farmers have but amount

land that these farmers have but amount

land that these farmers have but amount of time and efforts this paint just

of time and efforts this paint just

of time and efforts this paint just preparing this land is enormous their

preparing this land is enormous their

preparing this land is enormous their battle is not just with the nature and

battle is not just with the nature and

battle is not just with the nature and waiting for water the battle starts now

waiting for water the battle starts now

waiting for water the battle starts now when they take their 500 kilograms or

when they take their 500 kilograms or

when they take their 500 kilograms or 600 kilograms rice to the market but

600 kilograms rice to the market but

600 kilograms rice to the market but these markets are composed with lot of

these markets are composed with lot of

these markets are composed with lot of people who have self interests some of

people who have self interests some of

people who have self interests some of these people have more information than

these people have more information than

these people have more information than others it’s called

others it’s called

others it’s called information asymmetry in economics what

information asymmetry in economics what

information asymmetry in economics what that does to these markets people who

that does to these markets people who

that does to these markets people who have more information can manipulate

have more information can manipulate

have more information can manipulate people who have no information or less

people who have no information or less

people who have no information or less informations and farmers are one of

informations and farmers are one of

informations and farmers are one of those people who have less

those people who have less

those people who have less resources to kind of interpret and

resources to kind of interpret and

resources to kind of interpret and predict how markets will move by the

predict how markets will move by the

predict how markets will move by the time their goods reach to consumer their

time their goods reach to consumer their

time their goods reach to consumer their profit is one painting or less than one

profit is one painting or less than one

profit is one painting or less than one penny so the future the hard work they

penny so the future the hard work they

penny so the future the hard work they have put together to educate their kids

have put together to educate their kids

have put together to educate their kids or to have better life goes to Penny’s

or to have better life goes to Penny’s

or to have better life goes to Penny’s last 20 years there are around 300,000

last 20 years there are around 300,000

last 20 years there are around 300,000 farmer suicides in India this number is

farmer suicides in India this number is

farmer suicides in India this number is shocking and why it happens it’s just

shocking and why it happens it’s just

shocking and why it happens it’s just because unreliable reputation where

because unreliable reputation where

because unreliable reputation where farmers cannot trust any other in the

farmers cannot trust any other in the

farmers cannot trust any other in the market and inequality that this market

market and inequality that this market

market and inequality that this market causes second I’m gonna take you to the

causes second I’m gonna take you to the

causes second I’m gonna take you to the one of the most beautiful cities in the

one of the most beautiful cities in the

one of the most beautiful cities in the world New York City Wall Street on Wall

world New York City Wall Street on Wall

world New York City Wall Street on Wall Street people wake up every day and

Street people wake up every day and

Street people wake up every day and they’re super smart engineers

they’re super smart engineers

they’re super smart engineers mathematicians physicists or business

mathematicians physicists or business

mathematicians physicists or business people their goal is as the Sun rises

people their goal is as the Sun rises

people their goal is as the Sun rises they hope that market will rise prices

they hope that market will rise prices

they hope that market will rise prices will go up and eventually they will have

will go up and eventually they will have

will go up and eventually they will have algorithms and systems that nobody can

algorithms and systems that nobody can

algorithms and systems that nobody can imagine will beat the market these

imagine will beat the market these

imagine will beat the market these technologies are so complex that no

technologies are so complex that no

technologies are so complex that no human being can imagine how fast the

human being can imagine how fast the

human being can imagine how fast the trades are happening and what’s their

trades are happening and what’s their

trades are happening and what’s their impact on our society I will show you

impact on our society I will show you

impact on our society I will show you what happened on May 6th 2010 after

what happened on May 6th 2010 after

what happened on May 6th 2010 after noontime 2:47 p.m. accident church stock

noontime 2:47 p.m. accident church stock

noontime 2:47 p.m. accident church stock was trading at 40 in a minute stock

was trading at 40 in a minute stock

was trading at 40 in a minute stock price went to a painting and everybody

price went to a painting and everybody

price went to a painting and everybody started wondering what’s going on there

started wondering what’s going on there

started wondering what’s going on there is huge turbulence in the market and

is huge turbulence in the market and

is huge turbulence in the market and people cannot make sense of what’s

people cannot make sense of what’s

people cannot make sense of what’s happening Dow dropped two highest 9.2

happening Dow dropped two highest 9.2

happening Dow dropped two highest 9.2 percent that intraday swing that market

percent that intraday swing that market

percent that intraday swing that market has seen this is the second highest

has seen this is the second highest

has seen this is the second highest interest wing in the history of Wall

interest wing in the history of Wall

interest wing in the history of Wall Street what’s happening in 36 minutes we

Street what’s happening in 36 minutes we

Street what’s happening in 36 minutes we lost not thousand

lost not thousand

lost not thousand million but one trillion dollars of

million but one trillion dollars of

million but one trillion dollars of wealth and we still don’t know how and

wealth and we still don’t know how and

wealth and we still don’t know how and why this happened

why this happened

why this happened so we are building these complex systems

so we are building these complex systems

so we are building these complex systems and markets and organizations and we are

and markets and organizations and we are

and markets and organizations and we are putting our dreams and 401ks and all the

putting our dreams and 401ks and all the

putting our dreams and 401ks and all the efforts that we put in our life into

efforts that we put in our life into

efforts that we put in our life into savings and the value of those savings

savings and the value of those savings

savings and the value of those savings is one penny in the end so we are fooled

is one penny in the end so we are fooled

is one penny in the end so we are fooled by this randomness that this nature and

by this randomness that this nature and

by this randomness that this nature and the world present to us and we still

the world present to us and we still

the world present to us and we still don’t know how to deal with it you can

don’t know how to deal with it you can

don’t know how to deal with it you can say well on Wall Street we have

say well on Wall Street we have

say well on Wall Street we have reputation we have credit agencies

reputation we have credit agencies

reputation we have credit agencies however credit agencies fail because we

however credit agencies fail because we

however credit agencies fail because we seen in 2000 crashes that a lot of

seen in 2000 crashes that a lot of

seen in 2000 crashes that a lot of credit ratings were manipulated so who

credit ratings were manipulated so who

credit ratings were manipulated so who do you trust the third place I want to

do you trust the third place I want to

do you trust the third place I want to take you to the amazing hyper-connected

take you to the amazing hyper-connected

take you to the amazing hyper-connected world that we live in the internet on

world that we live in the internet on

world that we live in the internet on internet as social interactions are

internet as social interactions are

internet as social interactions are growing there is unprecedented growth

growing there is unprecedented growth

growing there is unprecedented growth among the data that we have and this

among the data that we have and this

among the data that we have and this data has enabled the new kind of

data has enabled the new kind of

data has enabled the new kind of economies called

economies called

economies called sharing markets or gig economies for

sharing markets or gig economies for

sharing markets or gig economies for example Airbnb uber mechanical turn our

example Airbnb uber mechanical turn our

example Airbnb uber mechanical turn our TaskRabbit where you can hire people in

TaskRabbit where you can hire people in

TaskRabbit where you can hire people in an instant rate or you can work for

an instant rate or you can work for

an instant rate or you can work for somebody if you have access to Internet

somebody if you have access to Internet

somebody if you have access to Internet so the goal is somebody who has some

so the goal is somebody who has some

so the goal is somebody who has some need in uber you want to go from one

need in uber you want to go from one

need in uber you want to go from one place to other place that you need so

place to other place that you need so

place to other place that you need so you’re putting a request for uber and

you’re putting a request for uber and

you’re putting a request for uber and somebody who has resources it’s either

somebody who has resources it’s either

somebody who has resources it’s either it’s time or some sort of bungalow or a

it’s time or some sort of bungalow or a

it’s time or some sort of bungalow or a flat or a car that he can rent here or

flat or a car that he can rent here or

flat or a car that he can rent here or on Mechanical Turk for example if I’m

on Mechanical Turk for example if I’m

on Mechanical Turk for example if I’m training artificial intelligence

training artificial intelligence

training artificial intelligence algorithm I can put my data in the real

algorithm I can put my data in the real

algorithm I can put my data in the real world and ask people to label it so that

world and ask people to label it so that

world and ask people to label it so that I can train my machine learning

I can train my machine learning

I can train my machine learning algorithm and bake make better in

algorithm and bake make better in

algorithm and bake make better in inferences on the data now this is super

inferences on the data now this is super

inferences on the data now this is super appealing because it’s so easy for

appealing because it’s so easy for

appealing because it’s so easy for people who don’t have jobs to get on

people who don’t have jobs to get on

people who don’t have jobs to get on these markets this is one of the example

these markets this is one of the example

these markets this is one of the example from being a Turk or paper written by

from being a Turk or paper written by

from being a Turk or paper written by David Martin is

David Martin is

David Martin is most amazing paper I ever read on this

most amazing paper I ever read on this

most amazing paper I ever read on this gig economies

gig economies

gig economies it says I’m having a hard time and

it says I’m having a hard time and

it says I’m having a hard time and especially financially roommates running

especially financially roommates running

especially financially roommates running out of money but only thing I can do to

out of money but only thing I can do to

out of money but only thing I can do to pay my bills is get on internet and

pay my bills is get on internet and

pay my bills is get on internet and start talking talking means go on

start talking talking means go on

start talking talking means go on Mechanical Turk and start answering

Mechanical Turk and start answering

Mechanical Turk and start answering these questions that requesters are

these questions that requesters are

these questions that requesters are posting to workers now there is a huge

posting to workers now there is a huge

posting to workers now there is a huge inequality in these markets because

inequality in these markets because

inequality in these markets because think about it

think about it

think about it you’re working with strangers you are

you’re working with strangers you are

you’re working with strangers you are hiding a stranger or you’re working for

hiding a stranger or you’re working for

hiding a stranger or you’re working for a stranger and sometimes people get

a stranger and sometimes people get

a stranger and sometimes people get experiences with it that their work get

experiences with it that their work get

experiences with it that their work get rejected for example on Mechanical Turk

rejected for example on Mechanical Turk

rejected for example on Mechanical Turk if you are a requester you hold the

if you are a requester you hold the

if you are a requester you hold the power to accept or reject the data that

power to accept or reject the data that

power to accept or reject the data that somebody has produced so worker can

somebody has produced so worker can

somebody has produced so worker can spend hours working on and creating the

spend hours working on and creating the

spend hours working on and creating the data sets but requester in a minute can

data sets but requester in a minute can

data sets but requester in a minute can reject that data without paying a single

reject that data without paying a single

reject that data without paying a single penny to the worker so this is one of

penny to the worker so this is one of

penny to the worker so this is one of the court from requester to worker he

the court from requester to worker he

the court from requester to worker he says you received a bonus from some

says you received a bonus from some

says you received a bonus from some company for work related to something

company for work related to something

company for work related to something and the value of your bonus is one cent

and the value of your bonus is one cent

and the value of your bonus is one cent now this is shame because bonus aren’t

now this is shame because bonus aren’t

now this is shame because bonus aren’t is one one one penny again same problems

is one one one penny again same problems

is one one one penny again same problems inequality and broken reputation leads

inequality and broken reputation leads

inequality and broken reputation leads to the breakdown in trust and we see

to the breakdown in trust and we see

to the breakdown in trust and we see internet markets are failing so if we go

internet markets are failing so if we go

internet markets are failing so if we go back to the farmer in India or people

back to the farmer in India or people

back to the farmer in India or people who are investing money on Wall Street

who are investing money on Wall Street

who are investing money on Wall Street or people who are finding new work on

or people who are finding new work on

or people who are finding new work on internet there is one thing common these

internet there is one thing common these

internet there is one thing common these all markets are leading to markets for

all markets are leading to markets for

all markets are leading to markets for laymen’s where value of goods it’s very

laymen’s where value of goods it’s very

laymen’s where value of goods it’s very hard to judge so I believe that every

hard to judge so I believe that every

hard to judge so I believe that every person on earth should get equal playing

person on earth should get equal playing

person on earth should get equal playing field in the market it’s people’s

field in the market it’s people’s

field in the market it’s people’s fundamental right whether you are in

fundamental right whether you are in

fundamental right whether you are in India as a farmer or in the America

India as a farmer or in the America

India as a farmer or in the America investing your money on Wall Street or a

investing your money on Wall Street or a

investing your money on Wall Street or a person

person

person on internet and the only way that can

on internet and the only way that can

on internet and the only way that can happen is we rethink about trust we can

happen is we rethink about trust we can

happen is we rethink about trust we can think about trust and reputation as a

think about trust and reputation as a

think about trust and reputation as a backbone of these economies but what it

backbone of these economies but what it

backbone of these economies but what it means

means

means can we trust reputation itself

can we trust reputation itself

can we trust reputation itself can we trust credit agencies can we

can we trust credit agencies can we

can we trust credit agencies can we trust 5-star ratings that we see all

trust 5-star ratings that we see all

trust 5-star ratings that we see all around us this was the uber I took from

around us this was the uber I took from

around us this was the uber I took from the school across MIT and it asked me

the school across MIT and it asked me

the school across MIT and it asked me please rate there is another economy

please rate there is another economy

please rate there is another economy based on that that creates this sample

based on that that creates this sample

based on that that creates this sample boards that passenger can see and it

boards that passenger can see and it

boards that passenger can see and it shows you five star now the problem with

shows you five star now the problem with

shows you five star now the problem with this is that most of the time people

this is that most of the time people

this is that most of the time people rate in four point seven five to five

rate in four point seven five to five

rate in four point seven five to five not below how often you have given

not below how often you have given

not below how often you have given negative rating to a Lobel driver or how

negative rating to a Lobel driver or how

negative rating to a Lobel driver or how often you have rated a driver very few

often you have rated a driver very few

often you have rated a driver very few times and research shows that around

times and research shows that around

times and research shows that around eighty percent times people vote at the

eighty percent times people vote at the

eighty percent times people vote at the higher end and why that happens it’s

higher end and why that happens it’s

higher end and why that happens it’s more because people don’t care about

more because people don’t care about

more because people don’t care about watching and they don’t have incentives

watching and they don’t have incentives

watching and they don’t have incentives to what until they had a bad experience

to what until they had a bad experience

to what until they had a bad experience or in the marketplaces like Mechanical

or in the marketplaces like Mechanical

or in the marketplaces like Mechanical Turk where you have workers and

Turk where you have workers and

Turk where you have workers and requesters giving public feedback kind

requesters giving public feedback kind

requesters giving public feedback kind of seen as a problematic thing a worker

of seen as a problematic thing a worker

of seen as a problematic thing a worker if he says this requester is bad and if

if he says this requester is bad and if

if he says this requester is bad and if it goes on internet then he may not get

it goes on internet then he may not get

it goes on internet then he may not get work again and similarly if requester he

work again and similarly if requester he

work again and similarly if requester he gives bad feedback to a worker that

gives bad feedback to a worker that

gives bad feedback to a worker that worker can send him thousands of emails

worker can send him thousands of emails

worker can send him thousands of emails complaining about that and the requester

complaining about that and the requester

complaining about that and the requester will end up spending huge amount of time

will end up spending huge amount of time

will end up spending huge amount of time rather than doing his business so this

rather than doing his business so this

rather than doing his business so this is a problem when incentives are

is a problem when incentives are

is a problem when incentives are misaligned so most of the scores lead to

misaligned so most of the scores lead to

misaligned so most of the scores lead to four point seven five out of five and

four point seven five out of five and

four point seven five out of five and it’s known as reputation inflation and

it’s known as reputation inflation and

it’s known as reputation inflation and how do we solve that so I talked about

how do we solve that so I talked about

how do we solve that so I talked about problems but at MIT you don’t talk about

problems but at MIT you don’t talk about

problems but at MIT you don’t talk about problems

problems

problems you solve the problems and to solve this

you solve the problems and to solve this

you solve the problems and to solve this problem I led the invention of incentive

problem I led the invention of incentive

problem I led the invention of incentive compatible reputation system and the

compatible reputation system and the

compatible reputation system and the idea is let’s say you are a worker on

idea is let’s say you are a worker on

idea is let’s say you are a worker on Mechanical Turk or any of the sharing

Mechanical Turk or any of the sharing

Mechanical Turk or any of the sharing economy

economy

economy this mechanism rethinks about how

this mechanism rethinks about how

this mechanism rethinks about how repetition should work so workers

repetition should work so workers

repetition should work so workers incentives are get good work get paid

incentives are get good work get paid

incentives are get good work get paid well and get respectable communication

well and get respectable communication

well and get respectable communication from the requesters Bob a worker

from the requesters Bob a worker

from the requesters Bob a worker interacts with 15 people 15 requesters

interacts with 15 people 15 requesters

interacts with 15 people 15 requesters now if he lie in his ratings the person

now if he lie in his ratings the person

now if he lie in his ratings the person score that he’s rating high goes up on

score that he’s rating high goes up on

score that he’s rating high goes up on his task field so if he rates Alice as a

his task field so if he rates Alice as a

his task field so if he rates Alice as a top requester then next Alice’s tasks

top requester then next Alice’s tasks

top requester then next Alice’s tasks are available to the Bob and other

are available to the Bob and other

are available to the Bob and other requesters tasks go at the bottom so in

requesters tasks go at the bottom so in

requesters tasks go at the bottom so in this way Bob lies he’s inviting work

this way Bob lies he’s inviting work

this way Bob lies he’s inviting work from somebody that he doesn’t like or

from somebody that he doesn’t like or

from somebody that he doesn’t like or somebody that he will not pay him

somebody that he will not pay him

somebody that he will not pay him another hand if you’re a requester

another hand if you’re a requester

another hand if you’re a requester posting work to to the workers you’re in

posting work to to the workers you’re in

posting work to to the workers you’re in incentives get high quality work done in

incentives get high quality work done in

incentives get high quality work done in a quick amount of time but if you lie in

a quick amount of time but if you lie in

a quick amount of time but if you lie in your rating you may in white workers who

your rating you may in white workers who

your rating you may in white workers who you don’t like or they are not high

you don’t like or they are not high

you don’t like or they are not high quality so the way tasks are released

quality so the way tasks are released

quality so the way tasks are released the access to the task from Ellis is

the access to the task from Ellis is

the access to the task from Ellis is given to people who Alice’s likes first

given to people who Alice’s likes first

given to people who Alice’s likes first and then other people get the access

and then other people get the access

and then other people get the access later on

later on

later on so in this bi-directional system what’s

so in this bi-directional system what’s

so in this bi-directional system what’s happening is both workers and requesters

happening is both workers and requesters

happening is both workers and requesters have no incentive to lie because if they

have no incentive to lie because if they

have no incentive to lie because if they lie their future is super uncertain but

lie their future is super uncertain but

lie their future is super uncertain but if they tell the truth then they can

if they tell the truth then they can

if they tell the truth then they can make money or they can get their

make money or they can get their

make money or they can get their businesses done so this is called as

businesses done so this is called as

businesses done so this is called as strategy proof mechanisms but in a new

strategy proof mechanisms but in a new

strategy proof mechanisms but in a new angle that is encouraging pro-social

angle that is encouraging pro-social

angle that is encouraging pro-social behavior in these marketplaces now when

behavior in these marketplaces now when

behavior in these marketplaces now when I think about artificial intelligence

I think about artificial intelligence

I think about artificial intelligence and future of words or future of market

and future of words or future of market

and future of words or future of market there are these three things are super

there are these three things are super

there are these three things are super important empathy fairness and equality

important empathy fairness and equality

important empathy fairness and equality and when we are thinking about

and when we are thinking about

and when we are thinking about rust across this dimension we need to

rust across this dimension we need to

rust across this dimension we need to ask a question that can we design human

ask a question that can we design human

ask a question that can we design human center markets that can revolutionize

center markets that can revolutionize

center markets that can revolutionize our future that future deserves more

our future that future deserves more

our future that future deserves more than pennies and creates equal field in

than pennies and creates equal field in

than pennies and creates equal field in the marketplaces for every human being

the marketplaces for every human being

the marketplaces for every human being thank you

thank you

thank you [Applause]

”

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