Adam Smith Builds an App

Slide 1

Slide 1 text

Adam Smith Builds an App a discussion by Matthew McCullough of GitHub

Slide 2

Slide 2 text

No content

Slide 3

Slide 3 text

No content

Slide 4

Slide 4 text

No content

Slide 5

Slide 5 text

No content

Slide 6

Slide 6 text

No content

Slide 7

Slide 7 text

No content

Slide 8

Slide 8 text

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. “

Slide 9

Slide 9 text

No content

Slide 10

Slide 10 text

No content

Slide 11

Slide 11 text

1776

Slide 12

Slide 12 text

No content

Slide 13

Slide 13 text

No content

Slide 14

Slide 14 text

No content

Slide 15

Slide 15 text

No content

Slide 16

Slide 16 text

No content

Slide 17

Slide 17 text

No content

Slide 18

Slide 18 text

No content

Slide 19

Slide 19 text

The Economics of Software Development

Slide 20

Slide 20 text

No content

Slide 21

Slide 21 text

The Behaviour of Software Developers

Slide 22

Slide 22 text

No content

Slide 23

Slide 23 text

Economics Game Theory Ethics

Slide 24

Slide 24 text

No content

Slide 25

Slide 25 text

9 Economics 9 Game Theory 9 Ethics

Slide 26

Slide 26 text

No content

Slide 27

Slide 27 text

No content

Slide 28

Slide 28 text

No content

Slide 29

Slide 29 text

No content

Slide 30

Slide 30 text

Economics?

Slide 31

Slide 31 text

AFRICAN DEVELOPMENT BANK GROUP Eco Bank of Benin Plc 96 Recette Principal,Cotonou,Benin. African Development Bank (Eco Bank Plc) Email-contact: [email protected] 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.

Slide 32

Slide 32 text

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 [email protected] Thanks for your co-operation. Contract Payment Department

Slide 33

Slide 33 text

Slide 34

Slide 34 text

I’m not into

Slide 35

Slide 35 text

I’m not into economics

Slide 36

Slide 36 text

do you get

Slide 37

Slide 37 text

do you get paid for your work?

Slide 38

Slide 38 text

You are into

Slide 39

Slide 39 text

You are into economics

Slide 40

Slide 40 text

Economics

Slide 41

Slide 41 text

No content

Slide 42

Slide 42 text

No content

Slide 43

Slide 43 text

No content

Slide 44

Slide 44 text

No content

Slide 45

Slide 45 text

No content

Slide 46

Slide 46 text

No content

Slide 47

Slide 47 text

$100 per hour

Slide 48

Slide 48 text

Wow!

Slide 49

Slide 49 text

No content

Slide 50

Slide 50 text

Pricing

Slide 51

Slide 51 text

No content

Slide 52

Slide 52 text

No content

Slide 53

Slide 53 text

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

Slide 54

Slide 54 text

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

Slide 55

Slide 55 text

No content

Slide 56

Slide 56 text

No content

Slide 57

Slide 57 text

No content

Slide 58

Slide 58 text

No content

Slide 59

Slide 59 text

No content

Slide 60

Slide 60 text

No content

Slide 61

Slide 61 text

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

Slide 62

Slide 62 text

Discovery #1

Slide 63

Slide 63 text

Discovery #1 Don’t price everything at the point at which it would sell well.

Slide 64

Slide 64 text

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.

Slide 65

Slide 65 text

What about the occasional filet minon buyer?

Slide 66

Slide 66 text

No content

Slide 67

Slide 67 text

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

Slide 68

Slide 68 text

Markets

Slide 69

Slide 69 text

No content

Slide 70

Slide 70 text

No content

Slide 71

Slide 71 text

No content

Slide 72

Slide 72 text

No content

Slide 73

Slide 73 text

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

Slide 74

Slide 74 text

Slide 75

Slide 75 text

build tools...

Slide 76

Slide 76 text

No content

Slide 77

Slide 77 text

No content

Slide 78

Slide 78 text

No content

Slide 79

Slide 79 text

No content

Slide 80

Slide 80 text

XY\kk\inXpkfYl`c[

Slide 81

Slide 81 text

XY\kk\inXpkfYl`c[

Slide 82

Slide 82 text

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

Slide 83

Slide 83 text

Slide 84

Slide 84 text

No content

Slide 85

Slide 85 text

Slide 86

Slide 86 text

XY\kk\inXpkfYl`c[

Slide 87

Slide 87 text

XY\kk\inXpkfYl`c[

Slide 88

Slide 88 text

XY\kk\inXpkfYl`c[

Slide 89

Slide 89 text

No content

Slide 90

Slide 90 text

No content

Slide 91

Slide 91 text

No content

Slide 92

Slide 92 text

Discovery #2

Slide 93

Slide 93 text

Discovery #2 Don’t criticize in isolation

Slide 94

Slide 94 text

Discovery #2 Don’t criticize in isolation Make choices based on comparing available options

Slide 95

Slide 95 text

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. “

Slide 96

Slide 96 text

Utility Functions

Slide 97

Slide 97 text

$200 per hour

Slide 98

Slide 98 text

Awesome!

Slide 99

Slide 99 text

No content

Slide 100

Slide 100 text

wait... hey...

Slide 101

Slide 101 text

Why are they paying so much?

Slide 102

Slide 102 text

No content

Slide 103

Slide 103 text

No content

Slide 104

Slide 104 text

No content

Slide 105

Slide 105 text

No content

Slide 106

Slide 106 text

No content

Slide 107

Slide 107 text

No content

Slide 108

Slide 108 text

No content

Slide 109

Slide 109 text

No content

Slide 110

Slide 110 text

No content

Slide 111

Slide 111 text

No content

Slide 112

Slide 112 text

No content

Slide 113

Slide 113 text

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

Slide 114

Slide 114 text

Slide 115

Slide 115 text

Discovery #3

Slide 116

Slide 116 text

Discovery #3 Very few actions are pure currency transactions

Slide 117

Slide 117 text

Discovery #3 Very few actions are pure currency transactions Make choices based on weighing both utils and currency

Slide 118

Slide 118 text

No content

Slide 119

Slide 119 text

No content

Slide 120

Slide 120 text

Discovery #4

Slide 121

Slide 121 text

Discovery #4 Some technical decisions are made by stakeholders

Slide 122

Slide 122 text

Discovery #4 Some technical decisions are made by stakeholders More technical decisions are made by steak-eaters

Slide 123

Slide 123 text

Factories

Slide 124

Slide 124 text

creating happiness

Slide 125

Slide 125 text

No content

Slide 126

Slide 126 text

No content

Slide 127

Slide 127 text

No content

Slide 128

Slide 128 text

No content

Slide 129

Slide 129 text

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

Slide 130

Slide 130 text

No content

Slide 131

Slide 131 text

No content

Slide 132

Slide 132 text

Discovery #3

Slide 133

Slide 133 text

Discovery #3 Very few actions are pure currency transactions

Slide 134

Slide 134 text

Discovery #3 Very few actions are pure currency transactions Make choices based on weighing both utils and currency

Slide 135

Slide 135 text

Skill Spikes

Slide 136

Slide 136 text

No content

Slide 137

Slide 137 text

No content

Slide 138

Slide 138 text

No content

Slide 139

Slide 139 text

No content

Slide 140

Slide 140 text

No content

Slide 141

Slide 141 text

No content

Slide 142

Slide 142 text

No content

Slide 143

Slide 143 text

No content

Slide 144

Slide 144 text

No content

Slide 145

Slide 145 text

No content

Slide 146

Slide 146 text

Slide 147

Slide 147 text

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

Slide 148

Slide 148 text

Discovery #5

Slide 149

Slide 149 text

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

Slide 150

Slide 150 text

Discovery #5 One developer is not ever fully comparable to another Choose co-workers carefully. Some actually cost you utils.

Slide 151

Slide 151 text

No content

Slide 152

Slide 152 text

No content

Slide 153

Slide 153 text

No content

Slide 154

Slide 154 text

Discovery #6

Slide 155

Slide 155 text

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

Slide 156

Slide 156 text

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.

Slide 157

Slide 157 text

recruiters...

Slide 158

Slide 158 text

No content

Slide 159

Slide 159 text

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" Subject: do you know any junior java developers Date: March 2, 2012 12:17:48 PM CST To: "Matthew McCullough"

Slide 160

Slide 160 text

No content

Slide 161

Slide 161 text

No content

Slide 162

Slide 162 text

No content

Slide 163

Slide 163 text

Java Scala JavaScript Objective-C Clojure

Slide 164

Slide 164 text

Discovery #7

Slide 165

Slide 165 text

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

Slide 166

Slide 166 text

Discovery #7 Hot skills can flame out unexpectedly but can pay very well in the short run. Have a modestly diversified portfolio of skills.

Slide 167

Slide 167 text

True Cost

Slide 168

Slide 168 text

Skill Retention

Slide 169

Slide 169 text

Java Scala JavaScript Objective-C Clojure

Slide 170

Slide 170 text

No content

Slide 171

Slide 171 text

Even a brief nap may help boost learning, memory, and creative problem solving. “ —Harvey B. Simon, M.D., Harvard Medical School

Slide 172

Slide 172 text

Discovery #8

Slide 173

Slide 173 text

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

Slide 174

Slide 174 text

Discovery #8 Our primary job functions are learning and invention. Sleep aids skill acquisition, retention & creativity. Sleep more.