A presentation by Dr. Robin Upton (2005-05-08).

Available for download at www.altruists.org/ae9

Attribution – NonCommercial - ShareAlike

www.altruists.org

Altruistic Economics

AE9: Personal

Time-Banking

Introduction to Personal Time-Banking

Recommended Pre-requisite: AE7: Multiple Currencies

v1.0

Introduction to Personal Time-Banking

. “Personal Time Banking”

• Users can define any currencies they wish [AE7]

• Personal time is a unique resource, because it…

… is available, but limited & precious to everyone.

• Personal time has a role as a default …

… cannot be stored.

… is understood worldwide.

… denomination for sympathy.

… reference currency.

Aysha

“Personal Time Banking”

. Time as the Default Currency

• “Time Banking” is a phrase used by centralised CC systems worldwide

=> Personal time, TP, is an obvious choice as a universal reference currency [AE7]

• To differentiate this model from these we talk of “Personal Time Banking”

Personal Time Bank

For Aysha, write this TAysha

TAysha Universal Income

TAyshaTime Spent

Decentralised Record structure. Aysha has exclusive control of this data.

• Everyone has a ‘Personal Time Bank’, with a God-given income of 24 Hours/day

Time as the Default Currency

. Consistency of TP Statements

• People are free to use TP just as they would any other currency

Actions that take one hour need not necessarily be rated at -1, so people can vary TP to reflect their feelings …

1 hour of time enjoyably spent might be rated at –½, 0, +2 … Time Agreeably Spent: TP > -1

1 hour of unpleasant activity could be rated as –2, –3, –10 … Time Disagreeably Spent: TP < -1

Consistency of TP Statements

. Time-Denominated Sympathy

• Friends make sympathy statements that intermediate each another’s differing

usages of TP

• Evaluation of transactions with TP is subjective, so different individuals may use it in differently ways…

• A coherent system is possible if individuals’ own uses of TP

are consistent

TFriendSympathyTP

Aysha

Time-Denominated Sympathy

. Reviewing Computer Fixing

• To facilitate time exchange, use TP as the default currency for sympathy

• Users who spend more resources on than time with friends may express sympathy in other currencies

Personal Time Bank

Friend’s Time

Aysha’s Time

1

2

3

-1-2-3-1

-2

1TAysha TFriend

Sympathy

Birbal

Personal Time Bank

Aysha

Personal Time Bank

Reviewing Computer Fixing

Currency Conversions

• The computer fixing example of AE5 involves 3 currencies: TA, TX & TB

RequestCapacity

TBirbalTAysha

Computer-Fixing Time,

TX

This is a 3rd Party Defined

Currency

Aysha declares her skill with reference to her Personal time Bank

Birbal makes his request with respect to his

Personal time Bank• Now consider the two exchange rates involved …

Currency Conversions

. Transaction Calculation

• Every currency conversion occurs with reference to an Exchange Rate statement [AE6]

Description From ToPublished

By

Competency (Computer Skill)

TAysha TX Aysha

Request (For Computer Skill)

TX TBirbal Birbal

• Now we shall use some actual values to calculate the Individualistic Transaction Evaluation [AE5] …

Transaction Calculation

. Individualistic Transaction Evaluation

Conversion Exchange Rate TAysha Tx TBirbal

Competency (Computer Skill)

(nTx , -nTAysha)

Request (For Computer Skill)

(6TBirbal, -Tx )

… saving 6 hours from Birbal’s Time Bank

• Aysha withdraws 1 hour from her Personal Time Bank …

TX serves as a Medium of Exchange. No one actually accrues any.

-1 +6

+1

and swaps it for 1 hour of computer fixing time …

-1 +1-1

Individualistic Transaction Evaluation

. Aysha’s Sympathy for Birbal

Calculation TAysha TBirbal

Individualistic Evaluation -1 +6

…Birbal benefits, but Aysha loses out.

Competency

Request

• Now we look at the effects of sympathy [AE1-3, 5-7] …

=> Considered from a purely selfish basis …

Shared responsibility of both parties

Birbal

Personal Time Bank

Aysha’s Sympathy for Birbal

. Birbal’s Sympathy for Aysha

• Aysha’s altruistic motivation involves 2 currencies: TA & TB

Aysha

Personal Time Bank

SympathyTBirbal

Use Aysha’s sympathy statement to convert 6TB into TA:

6TBirbal x (nTB, -n0.4TA) = 2.4TAysha

+6

• Aysha’s sympathy statement declares how she equates TB to TA

TAysha

+2.4

Aysha

Personal Time Bank

Birbal’s Sympathy for Aysha

. Altruistic Transaction Evaluation

• Birbal’s sympathy for Aysha also involves TA & TB

Birbal

Personal Time Bank

SympathyTAysha

-1

Birbal’s sympathy statement translates TA to TB:

-1TAysha x (n0.25TB, -nTA) = -0.25TBirbal

TBirbal

-¼

Altruistic Transaction Evaluation

.Computer Fixing Resource Cycle

Calculation TAysha TBirbal

Individualistic Evaluation -1 +6

Aysha’s Sympathy for Birbal

Birbal’s Sympathy for Aysha

+2.4

-0.25

+1.4 +5.75

Add together the Selfish & Sympathetic evaluations . . .Applying sympathy …

we discover that both Aysha & Birbal see the transaction as profitable.

,

Altruistic Evaluation

Birbal

Personal Time Bank

Aysha

Personal Time Bank

Computer Fixing Resource Cycle

RequestCapacity

Sympathy

TBirbal

TAysha

Computer-Fixing Time,

TX

Sympathy

TBirbal

TBirbal

Calculation

. Work for a Friend of a Friend

Actual Resources

TAysha

TAysha

Birbal

Aysha

Work for a Friend of a Friend

. Currency Conversions

Capacity

TB

Personal Time Bank

Chris

RequestPersonal

Time BankSympathyTA

TC

TB

Calculation

TXTA

TC

Actual Resources

• If Aysha fixes a computer for a friend of a friend, the accounting involves 4* currencies…

*More if there are other indirect sympathies…

Sympathy

Currency Conversions

. Modelling Relationships

Exchange Rate Value TAysha TBirbal TChris Tx

Competency (Computer Skill)

( nTx , -nTAysha) -1 +1

Request (For Computer Skill)

(6TChris, -Tx ) +6 -1

Sympathy (For Chris)

( nTChris, -n0.5TBirbal)

Sympathy (For Birbal)

( nTBirbal, -n0.4TAysha)

to find that Aysha sees this as profitable,

since +1.2 –1 > 0

+3

+1.2

Again, we apply sympathy …

Summary of Personal Time-Banking

Recommended Further Reading AE10: Keeping Score . . .http://www.altruists.org/ae10

Personal time, TP, is a uniquely important currency.

By default, TP is used to denominate sympathy.

However, TP functions just like any other currency.5TA, -5TX

nTA, -2nTX