Reconciling multiple objectives – Politics or markets?

Abstract

In this paper we argue that the evolution of protocols is one of the most important yet least understood aspects of the governance of information systems. At the deepest level, security protocols determine the power structure of a system: who can do what with whom. The development, adoption, spread and evolution of protocols, and competition between them, are both political and economic activities. They may reconcile multiple objectives or be the battlefield in which one interest defeats another. They occur at all levels in the online ecosystem, from individual and small-firm action, up through organisations and networks to whole ecosystems – and may eventually play a role in shaping culture, values and norms. They play a key role in innovation: early movers may use protocols to establish a strategic advantage and lock competitors out. How can we understand such complex behaviour? In this paper we sketch a possible framework inspired by research in institutional economics.