Commons-based peer production (CBPP) is a term coined by Harvard Law School professor Yochai Benkler. It describes a model of socio-economic production in which large numbers of people work cooperatively; usually over the Internet. Commons-based projects generally have less rigid hierarchical structures than those under more traditional business models.

One of the major characteristics of the commons-based peer production is its non-profit scope. Often—but not always—commons-based projects are designed without a need for financial compensation for contributors. For example, sharing of STL (file format) design files for objects freely on the internet enables anyone with a 3-D printer to digitally replicate the object, saving the prosumer significant money.

Synonymous terms for this process include consumer co-production and collaborative media production.

Yochai Benkler contrasts commons-based peer production with firm production, in which tasks are delegated based on a central decision-making process, and market-based production, in which allocating different prices to different tasks serves as an incentive to anyone interested in performing a task.

In his book The Wealth of Networks (2006), Yochai Benkler significantly expands on his definition of commons-based peer production. According to Benkler, what distinguishes commons-based production is that it doesn't rely upon or propagate proprietary knowledge: "The inputs and outputs of the process are shared, freely or conditionally, in an institutional form that leaves them equally available for all to use as they choose at their individual discretion." To ensure that the knowledge generated is available for free use, commons-based projects are often shared under an open license.

Not all commons-based production necessarily qualifies as commons-based peer production. According to Benkler, peer production is defined not only by the openness of its outputs, but also by a decentralized, participant-driven working method of working.

Peer production enterprises have two primary advantages over traditional hierarchical approaches to production:

  1. Information gain: Peer production allows individuals to self-assign tasks that suit their own skills, expertise, and interests. Contributors can generate dynamic content that reflects the individual skills and the "variability of human creativity."
  2. Great variability of human and information resources leads to substantial increasing returns to scale to the number of people, and resources and projects that may be accomplished without need for a contract or other factor permitting the proper use of the resource for a project.

Aaron Krowne offers another definition:

<blockquote>Commons-based peer production refers to any coordinated, (chiefly) internet-based effort whereby volunteers contribute project components, and there exists some process to combine them to produce a unified intellectual work. CBPP covers many different types of intellectual output, from software to libraries of quantitative data to human-readable documents (manuals, books, encyclopedias, reviews, blogs, periodicals, and more).</blockquote>

Principles

First, the potential goals of peer production must be modular. In other words, objectives must be divisible into components, or modules, each of which can be independently produced.

Second, the granularity of the modules is essential. Granularity refers to the degree to which objects are broken down into smaller pieces (module size).

Similarly, commons-based projects, as claimed by Yochai Benkler, are the results of individuals acting "out of social and psychological motivations to do something interesting". He goes on describing the wide range of reasons as pleasure, socially and psychologically rewarding experiences, to the economic calculation of possible monetary rewards (not necessarily from the project itself).

On the other hand, the need for collaboration and interaction lies at the very core of human nature and turns out to be a very essential feature for one's survival. Enhanced with digital technologies, allowing easier and faster collaboration which was not as noticeable before, it resulted in a new social, cultural and economic trend named collaborative society. This theory outlines further reasons for individuals to participate in peer production such as collaboration with strangers, building or integrating into a community or contributing to a general good. Peer Property indicates the innovative nature of legal forms such as the General Public License, the Creative Commons, etc. Whereas traditional forms of property are exclusionary ("if it is mine, it is not yours"), peer property forms are inclusionary. It is from all of us, i.e. also for you, provided you respect the basic rules laid out in the license, such as the openness of the source code for example.

The ease of entering and leaving an organization is a feature of adhocracies.

The principle of commons-based peer production is similar to collective invention, a model of open innovation in economics coined by Robert Allen.

Also related: Open-source economics and Commercial use of copyleft works.

Criticism

Some believe that the commons-based peer production (CBPP) vision, while powerful and groundbreaking, needs to be strengthened at its root because of some allegedly wrong assumptions concerning free and open-source software (FOSS).

The CBPP literature regularly and explicitly quotes FOSS products as examples of artifacts "emerging" by virtue of mere cooperation, with no need for supervising leadership (without "market signals or managerial commands", in Benkler's words).

It can be argued, however, that in the development of any less than trivial piece of software, irrespective of whether it be FOSS or proprietary, a subset of the (many) participants always play—explicitly and deliberately—the role of leading system and subsystem designers, determining architecture and functionality, while most of the people work “underneath” them in a logical, functional sense.

From a micro-level, Bauwens and Pantazis are of the view that CBPP models should be considered a prototype, since it cannot reproduce itself fully outside of the limits that capitalism has imposed on it as a result of the interdependence of CBPP with capitalist competition. The innovative activities of CBPP occur within capitalist competitive contexts, and capitalist firms can gain competitive advantage over firms that rely on personal research without proprietary knowledge, because the former is able to utilize and access the knowledge commons, especially in digital commons where participants in CBPP struggle to earn direct livelihood for themselves. CBPP is then at the risk of being subordinated.

Alternative to capitalism

Proponents argue that commons-based peer production (CBPP) represents an alternative form of production from traditional capitalism. However, CBPP supporters acknowledged in 2019 that it was still a prototype of a new way of producing, and CBPP could not yet be considered a complete form of production by itself. According to Bauwens, Kostakis, and Pazaitis, CBPP "is currently a prototype since it cannot as yet fully reproduce itself outside of mutual dependence with capitalism."

  • Netarchical capitalism: In this version of capitalism, P2P elements are mainly found in digital platforms, through which individuals can interact with each other. These platforms are controlled by the platform owners, which capture the value of the P2P exchanges.