|
|
|
|
|
|
|
|
|
|
|
Through just five or six intermediaries, you could be linked to millions of others. It is the notion behind what has been dubbed the small world effect.
It has happed to most of us, and it's virtually guaranteed to happen at again ? especially if you attend a social gathering. Whenever you have people eager to talk with one another, the chances are that some will find that they have friends and acquaintances in common. It is, as they say, a small world.
It may be a common enough experience, but the so-called small world effect is turning out to have some pretty big consequences. In the last 18 months it has become one of the hottest subjects in science. Now some believe it could revolutionize the way we think about everything from economic crashes to globalization.
The story of how an apparently trivial social phenomenon turned out to have far from trivial implications has its origins in a bizarre experiment carried out over 30 years ago by psychologist Stanley Milgram.
Milgram was trying to uncover the connections that lurk in our networks of friends and acquaintances, and hit upon a novel way of revealing them. He recruited people in various US states and sent each of them a package, together with some instructions.
These revealed that the packages were actually intended to two people picked by Milgram, who gave their names and some vague clues about where they lived, their occupation and age. What he did not give, however, was a precise postal address. The participants were then told to send the packages to whichever of their acquaintances they judged most likely to know the targets personally and be able to make the final delivery.
Keeping track of the postings, Milgram made the stunning discovery that the packages typically reached the two target people after passing through the hands of just five other people. Later experiments produced similar results, making the conclusion inevitable. It seems that, on average, everyone in America from arms dealer to zoo keeper can be connected to everyone else via a chain of just five or six intermediaries.
It is a result that becomes more bizarre the more you think about it. Sociologists estimate that we each typically have around 300 or so acquaintances ? people we're on first-name terms with. That suggests we're just one hand-shake (or email) away from 300 people, two away from 90,000, three away from 27 million and so on.
Viewed this way, the real surprise about Milgram's research is that it takes as many as five or six handshakes to connect every American to every other. An average of just four should suffice to connect up to 250 millions inhabitants of the US.
But there is a big assumption in this quick calculation: that our 300 friends are randomly spread throughout the population so that every American is likely to know, say, Alan Greenspan as Al at the corner store. But the fact is that our friends tend to fall into cliques: people who have similar levels of education, interests and opinions.
This, however, just makes Milgram's findings even more baffling: for if all our friends were confined to such rigid cliques, we would hardly ever discover we have friends in common. Each American, for example, would then be separated by an average of almost one million handshakes?250 million divided by 300 from each other. By that reckoning, Milgram should have died long before any of his packages reached their targets.
There is clearly something odd going on here. Our networks of friends are not randomly spread across society. Yet they still allow us to be linked to each other via few intermediaries, so that we often end up discovering "It's a small world". How do they do it?
It was this that intrigued Duncan Watts, in 1996 still a graduate at Cornell University. Watts had been working on a nice, solid doctorate about the chirps of lovelorn crickets. But he had run into a problem: how do the crickets fall into step so quickly? Was each listening to all his fellow crickets, or just to his closest neighbors?
Then Watts remembered a funny bit of folklore that his father had told him: that every American is just a few handshakes away from knowing the president of the United States. Watts wondered if there was a connection between this apparent bit of folklore and the problem he was trying to solve and perhaps many others too.
Watts expected his idea would be ridiculed by his advisor, Steve Strogatz at Cornell's department of theoretical and applied mechanics. Instead, Stogatz also fell under the spell of the big mystery of the small world effect, and the two joined forces to try and solve it.
They began by using a computer to create lots of networks of virtual "friends", and measuring how many "handshakes" were needed to connect one friend to another in a totally different part of the network.
At one extreme were the utterly regular networks, where every friend only knows those right next to them. Devoid of any long range connections capable of linking, say, Bill Clinton to some store-keep in Hawaii, these networks typically demanded lots of handshakes before one person could be connected to another. Right at the other extreme were totally random networks, where people were just as likely to have personal friends in the White House as in Hawaiian stores.
Watts and Strogatz were intrigued by what happened between these two extremes, when the network was neither entirely regular nor utterly random. They expected the number of handshakes needed to link people to drop as the random links grew.
But what they discovered was startling: just a tiny number of random links was enough to "short-circuit" an otherwise huge, regular network, allowing apparently unrelated friends to be linked in just a few handshakes.
The computer revealed how easy it is to turn even a vast network into a small world: if only one in 100 people have a random link to anyone else in the network, the average number of handshakes drops ten-fold.
THEY ARE EVERYWHERE
But computer simulations are one thing; can small worlds be created so easily in the real one? Watts and Strogatz set about searching for a huge real-life network that they could probe for signs of the small world effect. They found the perfect, if unlikely, example in the Internet Movie Database, a computer searchable catalogue with the names of over 200,000 actors and the films they have appeared in.
Analyzing the database, Watts and Strogatz found that the typical actor has worked with around 60 others. If the showbiz network were completely regular, with no random short-circuits, that figure would imply that you'd typically have to go through 1,800 other actors and their films to link one actor to another. Yet the computer showed that it is possible to link any actor to any other via just three intermediaries. The vast movie business is really a small world.
In fact, this had been known for years by movie buffs who play the so-called Kevin Bacon Game. The aim of the game is to link the eponymous American actor to any other via the fewest number of intermediaries.
Players were often struck by how often they could answer with the names of very few actors. For example, Bacon can be linked to Charlie Chaplin in just three steps: Bacon played in a film with Laurence Fishburn, who in turn was in a film with Marlon Brando, who himself once appeared with Chaplin.
Watts and Strogatz had confirmed what many players suspected was the explanation: the "short-circuiting" effect of a handful of actors whose careers span different eras, genres and cultures. For example, by starring in both Lethal Weapon and Hamlet, Mel Gibson short-circuits the all-action and classical genres, while martial arts actor Bruce Lee links the Chinese film industry to Hollywood.
The world of showbiz is now recognized as a classical small world. That is, it is made up of lots of little cliques of actors, most of whom stay in their own patch of the industry, mixed in with a few highly versatile ones with random links right across the acting network who thus link every actor to every other via very few steps.
When Watts and Strogatz published their findings in the leading science journal Nature, it triggered an explosion of media coverage. But it also sparked interest among academics in a diverse range of fields, all wondering whether small world effects are at work in their own patches.
The corporate world does show signs of being under the influence of small world effects, according to Bruce Kogut of the Wharton School of Business at the University of Pennsylvania, and Gordon Walker at the Cox School of Business at the Southern Methodist University in Texas.
Kogut and Walker applied Watts and Strogatz's methods to the ownership networks spanning over 500 of Germany's biggest corporations. Predictably, they found lots of cliques in the ownership of firms, the result of various tie-ups and mergers. But they also found that the short-circuiting effect of a few corporations typically allowed the ownership of any one firm to be linked to any other via just four intermediaries. In other words, for all their diversity, Germany's biggest firms actually form a cosy small world.
This explains why firms with apparently tenuous links to one another can still show similar corporate behavior. But it may also have implications for the way these companies deal with globalization.
Small world theory shows it only takes a few random links to short-circuit a vast network. So it's likely that the whole corporate world has already become a small world.
The study of small worlds is still in its infancy, yet it is already clear that their presence holds both benefits and threats. Economists and business studies experts are likely to reveal many more examples of small worlds and their implications in the years ahead.
Selling on eBay and the Internet is still a relatively a new phenomenon with unprecedented opportunity. Adam Ginsberg, recently featured on NBC's Today Show is an author and educator and has built a small fortune selling on eBay. As an early Internet pioneer, Adam discovered a system for generating wealth - through the power of the eBay marketplace.
Adam personally sold over $20,000,000 on eBay and the Internet in the last three years. Currently he travels the world sharing his knowledge, expertise and experience with others. Adam's book, "How to Buy, Sell & Profit on eBay", went to #1 on Amazon within 3 days of being released. Learn how Adam has solved the mystery of success on eBay and how you can apply his system to capitalize on this hot new money making opportunity. Adam has also created several best selling e-books and software to enable you to enhance your ability to succeed. You can learn more at http://www.adamginsberg.com
Advertisement: Honest Riches - Click Here!
Advertisement: Lost AdWords - Click Here!
Advertisement: Get $1 Million A Month In Google Pay-Per-Click Ads Free! - Click Here!
Advertisement: Who Loves Money? - Click Here!
Advertisement: SEO Elite, the GrandDaddy of SEO Software - Click Here!
How often do the words "I need" come out of your mouth, as it relates to your business? When you run your own company, it's easy to... Read More
Would you like to find the key that unlocks the door to a gold-mine of online response, sales and results for your business?It seems obvious that you... Read More
Rohit Kochgaway was very upset with his boss for his rebuking him today in office. He was very upset with his job. When he reached home in... Read More
I just arrived back from the best seminar I have ever attended in the last 10-years.There were more "Underground" millionaires at Yanik Silver's "Underground" seminar than I've... Read More
If your company is like the one I work for, your people are talking about the need for innovation. Mine has just announced a new program "that... Read More
We've all seen the hype: "We'll put your plan in front of thousands of investors!" "We'll write you an award-winning online business plan!" "Only $3,000 for thousands... Read More
Women business owners are our only clients, so naturally we celebrate and support female entrepreneurship. Operating in this market gives us the good fortune to learn about... Read More
Q: I started my business about a year ago and everything is going fine. We're growing and making a profit, but the stress of running the business... Read More
Bootstrapping in the context of business start-ups refers to the use of creative financing approaches such as leveraging personal savings, credit-card debt, loans from friends and family,... Read More
Times are tough. The economy is in a constant state of upheaval. Is your company doing better than most? Are you placing greater emphasis on pure performance?If... Read More
At times all of us need a bit of inspiration to add to our day. When I first read this article, I had started my own home... Read More
A primary inhibitor of business start-up is that few people have the financial cushion to give up a job for the uncertain income of a start-up venture.... Read More
Last week I was working with one of my small business clients, a bright and dynamic woman who's passionate about positioning her artisan business for growth. We... Read More
Summary: Even with a wide variety of sources available, coming up with an idea as the basis for a new venture can still be a difficult problem.... Read More
Start your own business, and soon enough, you find yourself in a situation where there are many things you want to say, all of them unprintable.It happens... Read More
They're really are powerful million dollar opportunites everywhere.Ok, let me explain.I jumped on a flight to Miami late yesterday for some business stuff and I do what... Read More
Betrayal, it can hit you like a load of bricks falling from the sky, leaving you with a pit in your stomach that no pill can cure.Starting... Read More
It never ceases to amaze me. Almost everyone peers into the future through a rear-view mirror. The future is imagined as a continuation of the past. I... Read More
In the United States we have the most efficient delivery service companies in the world. This is because the free market competitive system has pushed entrepreneurs to... Read More
So many people work their whole life to make money, but they know so little about out monetary system. They know so little about the Federal Reserve... Read More
Some would say about certain issues that the means do not justify the ends. Well more often the ends do not justify the means. For instance if... Read More
1. Why should I not compete with others?The very concept of "competition" is fear based. Somehow you are telling yourself that you have to "beat" the competition,... Read More
Of all the real or perceived impediments to success, the biggest is the fear of failure. Certainly, there are often many other obstacles to overcome, but it... Read More
There are many coating businesses in the market today, but have you ever asked yourself how one gets into this line of work? How they are formed... Read More
Q: When it comes to succeeding in business, which do you think is more important: education or experience? -- Regina M.A: Regina, have you seen the television... Read More
If you want to compete in the world of high growth startups, you better know how to play the marketing game. Marketing has become a big stakes... Read More
Franchise companies are not born they are made and when studying the history of franchise companies, it is amazing how similar they really are. To continue this... Read More
Successful business owners and managers need to be very clear about what outcomes they want. Whether you call them goals, objectives or targets, these are the factors... Read More
Bootstrapping in the context of business start-ups refers to the use of creative financing approaches such as leveraging personal savings, credit-card debt, loans from friends and family,... Read More
If your company is like the one I work for, your people are talking about the need for innovation. Mine has just announced a new program "that... Read More
You don't have to be rock-star famous before you are recognized as an authority in your field. You just have to begin to get the word out.... Read More
Yesterday was a beautiful, sunny day in New York and yes, I spent it alone :}.My wife left for lunch with some old friends at 11:30 and... Read More
What I've discovered from most of my small business clients is that most would prefer to build their business through referrals rather than through direct mail, advertising... Read More
How do franchise companies come to be? How do they start. What type of a person or entrepreneur becomes a franchisor? Below is the story of how... Read More
At times all of us need a bit of inspiration to add to our day. When I first read this article, I had started my own home... Read More
When's the last time someone asked you: "What's new?" If you're starting or growing a business, an e-business, or a web site, the answer is: "Everything!" ?... Read More
I am going to begin this article by sharing a shocking fact...Did you know that if you opened the door on every single budgie cage around the... Read More
Life as an entrepreneur is the American Dream. To be able to be your own boss, own your own business, never report to anyone else, work from... Read More
Any success you have in life must begin with a vision. A vision is the ability to see what others cannot see. It is being able to... Read More
Today, I got an email from a lady who hates all business people and entrepreneurs, because they are Greedy, Arrogant and a Host of other atrocities. She... Read More
More and more students, both in undergraduate and graduate institutions, are deciding to launch their own ventures upon graduation rather than taking the traditional route of working... Read More
1. Do What You LOVE: If you've chosen your business because you read that this niche was the next hot one, or because your favorite uncle (or... Read More
As you have shown an interest in starting a business of your own it would be safe to assume that you want to change your life. You... Read More
A business owner is thoroughly responsible for their own financial survival and possibly the financial survival of their employees. Business owners, for the most part, seem to... Read More
Once upon a time, there was a village on the banks of a fine, clear river. The villagers all drew their water from the river, and used... Read More
You should wait until you're older and have more business and real-world experience before starting a business. You should just focus on school for now. Nobody will... Read More
Dwight Payne and Gary Heap reside in Santa Barbara, CA, where they attend college and pursue their mutual hobby of science-fiction book collecting. They pooled their book... Read More
I just arrived back from the best seminar I have ever attended in the last 10-years.There were more "Underground" millionaires at Yanik Silver's "Underground" seminar than I've... Read More
Making the financial transition from paid employment to earning a living on your own is probably the single biggest challenge facing many would be entrepreneurs. For most,... Read More
Running a one-person business is a creative, flexible and challenging way to become your own boss and chart your own future. It is about creating a life,... Read More
Many of us slave away for years for one uninspiring company after another and dream of the day when we can sack the boss and go it... Read More
Running a business is not an easy endeavor, it takes courage, hard work and a strategic mindset. I feel now that I am retired looking back on... Read More