Barter


Creative and productive information interchange in organizations is often stymied by a perverse incentive setting among the members. We transform that competition into a positive exchange by using market principles. Specifically, we apply innovative market mechanisms to construct incentives while still encouraging pro-social behaviors. Barter includes means to enhance knowledge sharing, innovation creation, and productivity. It is being tested at MIT and in three sponsor companies and is becoming available as a readily installable package. We will measure the results and test the effectiveness of an information market in addressing organizational challenges. We are learning that transactions in rich markets can become an organizing principle among people potentially as strong as social networks.