Monday, April 10, 2006

The power of positive peer-influence :: An Economist in Paradise
"Have you ever noticed how in some shops, bank branches, companies, academic departments or neighbourhoods all of the individuals concerned are nice and friendly, while in other intrinsically similar places, all are less so?"

This guy Sheik writes for the good. And he writes well, too. An Economist in Paradise (Mauritius) - Go read his stuff.

Like the link above. Some tidbits:
All over Southern Europe and Latin America male eyes turn, comments and whistles flow in every direction when a pretty girl passes by. But it is, by far, not a universal phenomenon. In Northern Europe, North America and many parts of Asia, this behaviour are so frowned upon that it is very rarely seen. After all, just imagine the kerfuffle it would cause in a Finnish sauna, where naked men and women roam, and barely look at each other.

The role played by social interaction in shaping individual behaviour has long been ignored by mainstream economists.
. . .
Actually, economists have always focused on interaction, but of a simplistic nature: negative market interactions. When I purchase apples on the market, I bid up the price (albeit slightly), and this impacts on another individual, who also likes apples, but is being forced to purchase less because of the higher price. Negative market interactions are so trivial that they do not affect outcome at the level of the society: my pleasure in consuming extra apples is cancelled out by this individual’s displeasure of consuming less. Positive market interactions have also received attention. A producer’s incentive to produce a commodity can depend positively on other producers’ incentive to produce because of external economies of scale.
. . .
Have you ever noticed how in some shops, bank branches, companies, academic departments or neighbourhoods all of the individuals concerned are nice and friendly, while in other intrinsically similar places, all are less so? Why are the Germans so environmentally-friendly, the Afghans so hospitable, and the British so fair-play? A lot has to with peer-influence, says recent research in Economics. Peer-influence can also be nasty: in the French slums, cars are being burnt by gangs of teenagers every night. The UK prime minister, Tony Blair has repeatedly stressed the role played by peers in some of the contemporary British ills: binge drinking, petty theft, teenage pregnancy, date-rapes, use of ecstasy in clubs, etc.
. . .
Peer-influence is a crucial factor in education....
As I say - go read the whole thing.

The thing is, positive peer influence can be fostered. It is something that organizations can strive to achieve; it is part of making the most out of your limited resources. In a word, efficiency.

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