Aibrary Logo
Podcast thumbnail

Selling Space Twice

11 min

How the Hidden Rules of Ownership Control Our Lives

Golden Hook & Introduction

SECTION

Michael: That airplane seat you paid for? You don't actually own the space. And the airline is selling that same space to the person in front of you. Kevin: Wait, what? Hold on. How can they sell the same thing twice? That sounds like a scam. How is that even legal? Michael: It's not a scam, and it's not a mistake; it's a multi-billion dollar strategy. And this one, tiny, infuriating fact explains almost everything about the hidden rules of modern life. Kevin: Okay, my mind is already a little bit blown. Where is this coming from? Michael: It's a wild concept, and it's at the heart of this brilliant book we're diving into today: Mine!: How the Hidden Rules of Ownership Control Our Lives by Michael Heller and James Salzman. Kevin: Heller and Salzman... I've heard of them. Aren't they major legal scholars? Michael: Exactly. Top professors at Columbia and UCLA. And what they do, which has earned the book comparisons to classics like Freakonomics, is show that these hidden rules of ownership are everywhere. They govern everything from your HBO password to the biggest geopolitical conflicts. They argue that ownership isn't one thing, it's a collection of simple stories we tell ourselves about who deserves what. Kevin: Simple stories? Ownership feels pretty complicated when you’re arguing with a stranger over a parking spot. Michael: That's the beauty of it. The stories are simple, but the battles are fierce. And it all starts with that primal, two-year-old’s cry: "Mine!"

The Illusion of Obvious Ownership: A Battle of Stories

SECTION

Michael: Let's stick with the airplane, because it perfectly illustrates the first big idea: ownership is a battle of competing stories. And nothing shows this better than the infamous Knee Defender incident. Kevin: The Knee Defender! I know this thing. It's that little plastic gadget you clip onto your tray table to stop the person in front of you from reclining, right? It feels so passive-aggressive. Michael: Perfectly passive-aggressive. So picture this: a United flight from Newark to Denver. A businessman named James Beach, who's tall, is in his seat trying to work on his laptop. To protect his space, he attaches a Knee Defender. Kevin: I can already feel the tension building. This is like the start of a horror movie for frequent flyers. Michael: Exactly. The woman in the seat in front of him tries to recline. Her seat won't budge. She complains to the flight attendant, who tells Beach he has to remove the device. He's slow to comply. So the woman turns around, and throws her cup of water all over him and his laptop. Kevin: Whoa! It escalated that fast? From a blocked seat to a water fight at 30,000 feet? Michael: It gets worse. The conflict got so heated that the pilot had to divert the entire plane for an emergency landing in Chicago to kick both of them off. The flight arrived in Denver an hour and a half late. Kevin: That is absolutely insane. All for what, two inches of space? So, who was legally in the right here? The guy with the knees or the woman with the recline button? Michael: That's the million-dollar question, and the book's answer is what's so fascinating. There is no single right answer because they were using different, and equally valid, ownership stories. Kevin: What do you mean, "ownership stories"? Michael: Heller and Salzman say we all use one of six basic stories to claim something is ours. In this case, at least three were at war. The woman in front was using the story of Possession. The recline button is on her seat. She possesses it. It’s hers to use. Kevin: Okay, that makes sense. If the button is on my armrest, I feel like I own it. Michael: Right. But James Beach, the Knee Defender guy, was using the story of Attachment. The space his knees occupy is essential for his body, which is attached to him. He’s claiming the space is attached to him. Kevin: Huh. Attachment. It’s mine because it’s connected to something that’s mine. I can see that. My knees are definitely mine. Michael: And there's a third story: First-in-Time. The woman could argue she was assigned the seat first, and the right to recline came with it. It’s a classic "first come, first served" argument. Kevin: So you have Possession versus Attachment versus First-in-Time, all clashing in this tiny, pressurized tube. And everyone feels completely justified. A USA Today poll found the public is split exactly 50/50 on whether it's okay to recline. Michael: Precisely. And the airline knows this. They could easily solve it. They could paint a line on the armrest. They could make a clear rule. But they don't. And that's not an accident. Kevin: Why on earth not? Why would they want their passengers throwing drinks on each other and forcing emergency landings? Michael: Because the ambiguity is profitable. The inventor of the Knee Defender, Ira Goldman, put it perfectly. He said airlines are selling one space to two people. They sell you the space for your legs, and they sell the person in front of you the same space to recline into. By keeping the rules fuzzy, they can cram more seats onto the plane and let the passengers absorb the conflict. Kevin: Wow. So they create the problem, sell it to two different people, and then just step back and watch the chaos. That is diabolical. And brilliant. Michael: It's the hidden world of ownership design. It’s not about fairness; it’s about control. And once you see it on the airplane, you start to see it everywhere.

Ownership as a Tool: Strategic Ambiguity and Social Engineering

SECTION

Kevin: Okay, so the airline example is about profiting from chaos. But are there other ways this "strategic ambiguity" is used? It feels like most companies would want crystal clear rules to protect their stuff. Michael: You'd think so. But that brings us to the second, even more mind-bending idea from the book: sometimes, the most profitable strategy is to let people think they're getting away with something. Let's talk about sharing your HBO password. Kevin: (laughing) Oh, a topic near and dear to many of our listeners' hearts, I'm sure. I'm guessing the official rule is: don't do it. Michael: Of course. It's technically a federal crime. The book tells this amazing story about a New York Times reporter, Jenna Wortham, who wrote an article casually mentioning how she and her friends watched Game of Thrones using the login from "a guy in New Jersey that I had once met in a Mexican restaurant." Kevin: She wrote that in the New York Times? That’s bold. I'm guessing she got a very stern letter from HBO's lawyers, right? Michael: That’s what everyone expected. But what actually happened? The CEO of HBO at the time, Richard Plepler, was asked about it. And his response was shocking. He essentially said they love it. He had this incredible quote where he said, "What we’re in the business of doing is building addicts, of building video addicts." Kevin: He said that out loud? He wants people to "steal" his product to get them hooked? Michael: Exactly. For HBO, password sharing isn't a bug; it's a feature. It functions as a marketing tool. A college kid uses their parents' account, gets hooked on the shows, graduates, gets a job, and then becomes a paying customer. They're not losing a subscriber; they're cultivating a future one. By not enforcing their ownership rights, they grow the pie for everyone. Kevin: That is a completely different way of looking at it. They're playing a long game. It's not about protecting what's "mine" right now, it's about making sure more people want it later. Michael: It's pure social engineering through ownership design. And it shows the power of choosing your ownership story. HBO could have chosen the "Labor" story—"We worked hard to make this content, you must pay for it." That's the story most companies tell. Kevin: Right, the classic "you reap what you sow" argument. Michael: Instead, HBO quietly embraced a different reality. They understood that in the digital world, trying to lock everything down can be counterproductive. This is a huge theme in the book—the tension between different ownership claims. Think about the "Barbed Wire Wars" in the 19th-century American West. Kevin: Barbed Wire Wars? What's the connection? Michael: It was a battle between two ownership stories. The ranchers operated on a "first-in-time" custom of open-range grazing. Their cattle roamed freely. Then homesteaders, the farmers, arrived. They believed in the "Labor" story—they tilled the land, so they should own it and its produce, and keep cattle off. Kevin: So, open range versus private plots. How did they settle it? Michael: With technology. Joseph Glidden invented cheap, effective barbed wire in 1874. Suddenly, the farmers had a tool to enforce their ownership story. They could fence out the ranchers' cattle. It led to literal wars, with ranchers cutting fences at night. But ultimately, the farmers and their barbed wire won. It completely transformed the American West and established the "NO TRESPASSING" version of ownership we live with today. Kevin: Wow. So the Knee Defender is just the modern, dorkier version of barbed wire. It's a technology designed to enforce one person's ownership story over another's. Michael: You nailed it. Whether it's a physical fence or a vague password policy, ownership is a choice. It's a tool that can be designed to encourage certain behaviors and achieve specific goals, whether that's settling a continent or building a streaming empire.

Synthesis & Takeaways

SECTION

Kevin: This is fascinating. So, we have these invisible battles happening all around us—on planes, on our TVs, even over parking spots. If these rules are everywhere and they're constantly being manipulated, what's the big takeaway here? Are we all just puppets in some grand ownership game? Michael: It's not that we're puppets, but that ownership is the invisible remote control for society. The book argues there are only six of these simple stories—first-in-time, possession, labor, attachment, self-ownership, and family—and they're used to decide everything. They decide who gets a kidney transplant, who owns the rights to Martin Luther King Jr.'s 'I Have a Dream' speech, and who gets to build a new factory. The real power isn't in just saying "Mine!"; it's in getting society to agree on which story wins. Kevin: And the people who understand how to shape that agreement are the ones with the real power. Michael: Precisely. Understanding this isn't just about winning an argument on a plane. It's about recognizing how wealth is created, how inequality is perpetuated—like with the tragic history of Black land loss through heir property laws—and how we can potentially design better, fairer rules for the future. The authors, Heller and Salzman, really want us to see that these rules aren't set in stone. They are choices. Kevin: That’s a powerful idea. It shifts you from being a passive victim of the rules to an active participant who can question them. Michael: It makes you look at everything differently. You start asking the key questions: Whose hand is on the remote control? Who is choosing the story here? And who benefits? Kevin: Totally. The next time I see someone 'save' a parking spot with a chair after a snowstorm, I'm not just going to see a chair. I'll see a battle between the "Labor" story—'I shoveled this spot!'—and the public's claim to the street. It makes you wonder, where do you see these hidden ownership battles in your own life? Michael: That's a great question for our listeners. Once you start looking, you can't stop seeing them. Let us know your stories. We'd love to hear them. Kevin: This is Aibrary, signing off.

00:00/00:00