Adam Smith Builds an App

Adam Smith Builds an App

A presentation given at UberConf 2012 in Broomfield, Colorado, USA.

Further game theory resources an be found at https://gist.github.com/matthewmccullough/2721876 and http://ambientideas.com/blog/index.php/2011/04/game-theory-and-softwaredev/

Bededa744012c87721d68f69342f81b0?s=128

Matthew McCullough

July 13, 2012
Tweet

Transcript

  1. Adam Smith Builds an App a discussion by Matthew McCullough

    of GitHub
  2. None
  3. None
  4. None
  5. None
  6. None
  7. None
  8. The person whose whole life is spent in performing a

    few simple operations, of which the effects are perhaps always the same, or very nearly the same, has no occasion to exert his understanding or to exercise his invention in finding out expedients for removing difficulties which never occur. “
  9. None
  10. None
  11. 1776

  12. None
  13. None
  14. None
  15. None
  16. None
  17. None
  18. None
  19. The Economics of Software Development

  20. None
  21. The Behaviour of Software Developers

  22. None
  23. Economics Game Theory Ethics

  24. None
  25. 9 Economics 9 Game Theory 9 Ethics

  26. None
  27. None
  28. None
  29. None
  30. Economics?

  31. AFRICAN DEVELOPMENT BANK GROUP Eco Bank of Benin Plc 96

    Recette Principal,Cotonou,Benin. African Development Bank (Eco Bank Plc) Email-contact: oke.steven968@contractor.net http://www.ecobank.com ======================================================== Attention; The Eco Bank Plc kindly write to inform you that the African Development Bank Group (ADBG) in conjunction with African Union (AU) has bought over all the foreign debts within the African region in what is called DEBT-BUY-BACK AGREEMENT. Under this circumstance we have recall all payment file within African Continent only. It was possibly due to the pressure from the International Community, American Government, World Bank and the IMF. Coupled with the Crisis in African countries had prompted our contact to you in this first quarter of the year 2012. The Eco Bank Plc (http://www.ecobank.com) and (ADBG) are only working on the files approved by Solomon smith Banner as we have no trust on files submitted by local banks in Africa. All your data has been verified by SOLOMON SMITH BANNER.
  32. The Eco Bank Plc (http://www.ecobank.com) and (ADBG) are only working

    on the files approved by Solomon smith Banner as we have no trust on files submitted by local banks in Africa. All your data has been verified by SOLOMON SMITH BANNER. Please note that this information's must be kept secret to avoid hackers entering into our data base and steal information of beneficiaries. All payment process must be done in the bank; Back door transaction will not be accepted. No rigorous system involved. Payment should be on Bank to bank transaction, E-payment system. Please reconfirm your following information for verification of beneficiary's details (Your Full Names, Mailing address, Telephone number, fund amount, date of Birth and occupation), No bank details required at this stage. Get your information‚s forwarded to us via mail oke.steven968@contractor.net Thanks for your co-operation. Contract Payment Department
  33. The Eco Bank Plc (http://www.ecobank.com) and (ADBG) are only working

    on the files approved by Solomon smith Banner as we have no trust on files submitted by local banks in Africa. All your data has been verified by SOLOMON SMITH BANNER. Please note that this information's must be kept secret to avoid hackers entering into our data base and steal information of beneficiaries. All payment process must be done in the bank; Back door transaction will not be accepted. No rigorous system involved. Payment should be on Bank to bank transaction, E-payment system. Please reconfirm your following information for verification of beneficiary's details (Your Full Names, Mailing address, Telephone number, fund amount, date of Birth and occupation), No bank details required at this stage. Get your information‚s forwarded to us via mail oke.steven968@contractor.net Thanks for your co-operation. Contract Payment Department
  34. I’m not into

  35. I’m not into economics

  36. do you get

  37. do you get paid for your work?

  38. You are into

  39. You are into economics

  40. Economics

  41. None
  42. None
  43. None
  44. None
  45. None
  46. None
  47. $100 per hour

  48. Wow!

  49. None
  50. Pricing

  51. None
  52. None
  53. $95 Filet Minon $45 Roast Duck $35 Roast Chicken $25

    Ratatouille $15 Ceasar Salad
  54. $95 Filet Minon $45 Roast Duck $35 Roast Chicken $25

    Ratatouille $15 Ceasar Salad
  55. None
  56. None
  57. None
  58. None
  59. None
  60. None
  61. It is not from the benevolence of the butcher, the

    brewer, or the baker that we expect our dinner, but from their regard to their own self-interest. We address ourselves not to their humanity but to their self-love, and never talk to them of our own necessities, but of their advantages. “ —Adam Smith, An Inquiry into the Nature & Causes of the Wealth of Nations
  62. Discovery #1

  63. Discovery #1 Don’t price everything at the point at which

    it would sell well.
  64. Discovery #1 Price some top-shelf items high so as to

    sell others beneath them. Don’t price everything at the point at which it would sell well.
  65. What about the occasional filet minon buyer?

  66. None
  67. If you decry reality for not following your model, then

    you're no longer practicing science, you're an economist. “ —Every scientist that ever looked even sideways at economics
  68. Markets

  69. None
  70. None
  71. None
  72. None
  73. but then the obvious question to ask is what are

    the alternatives and do they work better? You want to think broadly about that, rethink a lot of the institutions; but you still have to think about what are the possible alternatives. If there are no possible alternative that's better then I think we are stuck with the not-so-good alternative we have; “ —Dr. Russ Roberts, George Mason University with Debra Satz on EconTalk, August 2011 Episode
  74. but then the obvious question to ask is what are

    the alternatives and do they work better? You want to think broadly about that, rethink a lot of the institutions; but you still have to think about what are the possible alternatives. If there are no possible alternative that's better then I think we are stuck with the not-so-good alternative we have; “ —Dr. Russ Roberts, George Mason University with Debra Satz on EconTalk, August 2011 Episode
  75. build tools...

  76. None
  77. None
  78. None
  79. None
  80. XY\kk\inXpkfYl`c[

  81. XY\kk\inXpkfYl`c[

  82. I also share your value of choice and enabling a

    wide range of choices. I do worry about if you make some choices available to people that are actually really harmful, you'll wind up in situations where sometimes people feel more compelled to make those choices. “ —Dr. Russ Roberts, George Mason University with Debra Satz on EconTalk, August 2011 Episode
  83. I also share your value of choice and enabling a

    wide range of choices. I do worry about if you make some choices available to people that are actually really harmful, you'll wind up in situations where sometimes people feel more compelled to make those choices. “ —Dr. Russ Roberts, George Mason University with Debra Satz on EconTalk, August 2011 Episode
  84. None
  85. I also share your value of choice and enabling a

    wide range of choices. I do worry about if you make some choices available to people that are actually really harmful, you'll wind up in situations where sometimes people feel more compelled to make those choices. “ —Dr. Russ Roberts, George Mason University with Debra Satz on EconTalk, August 2011 Episode
  86. XY\kk\inXpkfYl`c[

  87. XY\kk\inXpkfYl`c[

  88. XY\kk\inXpkfYl`c[

  89. None
  90. None
  91. None
  92. Discovery #2

  93. Discovery #2 Don’t criticize in isolation

  94. Discovery #2 Don’t criticize in isolation Make choices based on

    comparing available options
  95. O S X i s f o r b u

    i l d i n g websites, Linux is for running them, Windows is for testing Internet Explorer. “
  96. Utility Functions

  97. $200 per hour

  98. Awesome!

  99. None
  100. wait... hey...

  101. Why are they paying so much?

  102. None
  103. None
  104. None
  105. None
  106. None
  107. None
  108. None
  109. None
  110. None
  111. None
  112. None
  113. The figures... are based on the assumptions that both sides

    are able to translate all relevant values into a “common denominator” “utility”. To act “rationally” according to this criterion means simply to choose from among the available courses of action the one which promises to maximize expected value... over the long run. “ —Glenn Snyder Deterrence and Power, 1960
  114. The figures... are based on the assumptions that both sides

    are able to translate all relevant values into a “common denominator” “utility”. To act “rationally” according to this criterion means simply to choose from among the available courses of action the one which promises to maximize expected value... over the long run. “ —Glenn Snyder Deterrence and Power, 1960
  115. Discovery #3

  116. Discovery #3 Very few actions are pure currency transactions

  117. Discovery #3 Very few actions are pure currency transactions Make

    choices based on weighing both utils and currency
  118. None
  119. None
  120. Discovery #4

  121. Discovery #4 Some technical decisions are made by stakeholders

  122. Discovery #4 Some technical decisions are made by stakeholders More

    technical decisions are made by steak-eaters
  123. Factories

  124. creating happiness

  125. None
  126. None
  127. None
  128. None
  129. It is naturally to be expected, therefore, that some one

    or other of those who are employed in each particular branch of labour should soon find out easier and readier methods of performing their own particular work wherever the nature of it admits of such improvement. “ —Adam Smith, An Inquiry into the Nature & Causes of the Wealth of Nations
  130. None
  131. None
  132. Discovery #3

  133. Discovery #3 Very few actions are pure currency transactions

  134. Discovery #3 Very few actions are pure currency transactions Make

    choices based on weighing both utils and currency
  135. Skill Spikes

  136. None
  137. None
  138. None
  139. None
  140. None
  141. None
  142. None
  143. None
  144. None
  145. None
  146. It is naturally to be expected, therefore, that some one

    or other of those who are employed in each particular branch of labour should soon find out easier and readier methods of performing their own particular work wherever the nature of it admits of such improvement. “ —Adam Smith, An Inquiry into the Nature & Causes of the Wealth of Nations
  147. Only hire someone who is constantly improving their skills and

    seems like they would be great at running the company... Because they essentially are. “ —Chris Wanstrath GitHub Tech Talk
  148. Discovery #5

  149. Discovery #5 One developer is not ever fully comparable to

    another
  150. Discovery #5 One developer is not ever fully comparable to

    another Choose co-workers carefully. Some actually cost you utils.
  151. None
  152. None
  153. None
  154. Discovery #6

  155. Discovery #6 A weekly one hour spike on a technology

    generates informed hot or not positions
  156. Discovery #6 A weekly one hour spike on a technology

    generates informed hot or not positions Spikes indicate whether or not to invest more time.
  157. recruiters...

  158. None
  159. Hi Matthew, I have a couple of openings in the

    tech center for junior java developers with 3 - 5 years of java development experience. Do you know anyone you could recommend? If you refer someone and we hire them, you are eligible for a referral fee. Thank you in advance! From: "Kendra Alvarado" <kendra@wernercg.com> Subject: do you know any junior java developers Date: March 2, 2012 12:17:48 PM CST To: "Matthew McCullough" <matthewm@ambientideas.com>
  160. None
  161. None
  162. None
  163. Java Scala JavaScript Objective-C Clojure

  164. Discovery #7

  165. Discovery #7 Hot skills can flame out unexpectedly but can

    pay very well in the short run.
  166. Discovery #7 Hot skills can flame out unexpectedly but can

    pay very well in the short run. Have a modestly diversified portfolio of skills.
  167. True Cost

  168. Skill Retention

  169. Java Scala JavaScript Objective-C Clojure

  170. None
  171. Even a brief nap may help boost learning, memory, and

    creative problem solving. “ —Harvey B. Simon, M.D., Harvard Medical School
  172. Discovery #8

  173. Discovery #8 Our primary job functions are learning and invention.

  174. Discovery #8 Our primary job functions are learning and invention.

    Sleep aids skill acquisition, retention & creativity. Sleep more.
  175. Rest Well

  176. worth = worth + 2

  177. @matthewmccull