Day: February 9, 2024

Recent thoughts and ideas about business, life and things we are often too shy to talk about

The Matthew Effect

One afternoon, Prof Seelig rounded up students and split them into teams, each given $5 and two hours to make as much money as possible. Some students thought about gambling. Others thought about buying stock and then selling it for a profit. A third group got it!

The third group, realising that the $5 was actually a trap, ignored it altogether. They thought about themselves and their creativity as resources. One group inflated bicycle tyres for a fee. Another provided bookings and reservation services for a nearby restaurant. Yet another offered poetry and love-letter writing service.

This is the Parable of the Talents. The Matthew Effect. If you think about what little you have, that little will be taken away. Cold, but true.

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