IEEE Technology and Society Magazine - September 2017 - 57

ISTOCK/IPOPBA

approach to a complex socio-technical system is the
smart grid, and in particular new technologies that allow
users to buy energy from each other instead of from a
utility. A decentralized, open, and participatory smart
grid gives consumers and producers the power to join
forces, apply collective action, and act as groups on the
energy market [29], to establish flexible products for different target audiences, and even can help stabilize the
power grid overall [15].
Crucially, in a participatory self-organizing socio-technical system, users are given the power to establish the
rules governing their interactions themselves. The ability
to change the rules and the structure of the technical part
of the system through its social part ensures its long-term
viability and gives the system flexibility to evolve in a process driven by its users. This is akin to electronic institutions [2], but emphasizes the role of the human user as
being able to decide on changes in the system. The technical aspects of the system then need to be able to support, guide, and implement the choices of the users.
Users and the technical agents representing them can
form organizations by establishing common rules (or norms
[10]) among themselves. According to Merriam-Webster,
SEPTEMBER 2017

∕

organization is defined as "an administrative and functional structure." For our purpose, the groups discussed
here can thus be called "organizations" within the system. Individuals adhering to these common rules and
interacting with others that do the same form an organization in a bottom-up process. Examples for such organizations in a smart grid are consumer groups that act
together as buyers on the energy market [29]. The operational rules [19] of how to distribute cost, income, and
effort within the group are decided by the participants.
Likewise, collective-choice rules [19] that define common policies, e.g., for adding new participants, are
agreed to by the current members. A user can be a
member of many groups. If that is the case, other rules
must be in place to address conflicts of interest and similar issues. Interaction takes place mostly within those
groups, but is not limited to them. Groups are not imposed
from the outside, but form inside the system in a process
of self-organization. In other cases, the organizational
framework - including structures, rules, and oversight - is
provided in a top-down fashion and prospective constituents need to adhere to that framework in order to
join the organization.

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