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The Internet is now receiving another wave of interest because people have “discovered” that it is the vastest communication network ever built. As a matter of fact, the Internet was born a network and still is, but until recently its full potential had not been fully realized. In addition to facilitating two-way communication, the Internet creates a unique environment where multiple individuals can voluntarily interact with one another, as can be seen in online forums, shared databases, and virtual communities (Rheingold, 1993). Most groups or communities formed in this environment are self-organizing entities, which means that no central authorities for organizing or maintaining them are necessary. That is to say, virtual groups/communities are born and sustained through the voluntary communication efforts of many individuals.
This fascinating possibility of the many-to-many communication, however, leads us to unprecedented challenges of managing such online social collectivities. Human beings are often called rational actors who try to increase their gains/benefits, while minimizing losses/costs. (Perhaps this is why we all love free stuff!) Therefore, it is rational from an individual’s standpoint to enjoy a product/service while paying minimal or no costs. Thus, a question that follows is: What would happen if everyone behaved rationally? The most famous and influential answer to this question was provided by Adam Smith, the father of modern economics: Pursuit of personal interests serves the common good. This idea is the cornerstone of the market economy in which the behaviors of egoists pursuing self-interests are coordinated by the “invisible hand.”
An unfortunate fact is that the invisible hand sometimes fails. As Hardin (1982) puts it, “all too often we are less helped by the benevolent invisible hand than we are injured by the malevolent back of that hand” (p. 6).