The Power of Accumulative Advantage
The Power of Accumulative Advantage
But why?
Imagine two plants growing side by side. Each day they will compete for
sunlight and soil. If one plant can grow just a little bit faster than the
other, then it can stretch taller, catch more sunlight, and soak up more
rain. The next day, this additional energy allows the plant to grow even
more. This pattern continues until the stronger plant crowds the other out
and takes the lion’s share of sunlight, soil, and nutrients.
From this advantageous position, the winning plant has a better ability to
spread seeds and reproduce, which gives the species an even bigger
footprint in the next generation. This process gets repeated again and
again until the plants that are slightly better than the competition
dominate the entire forest.
Winner-Take-All Effects
Like plants in the rainforest, humans are often competing for the same
resources. Politicians compete for the same votes. Authors compete for
the same spot at the top of the best-seller list. Athletes compete for the
same gold medal. Companies compete for the same potential client.
Television shows compete for the same hour of your attention.
The difference between these options can be razor thin, but the winners
enjoy massively outsized rewards.
In situations like these, being just a little bit better than the competition
can lead to outsized rewards because the winner takes all. You only win
by 1 percent or 1 second or 1 dollar, but you capture 100 percent of the
victory. The advantage of being a little bit better is not a little bit more
reward, but the entire reward. The winner gets one and the rest get zero.