Episode 581: Toby E. Stuart
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The Power of Status: Examining the Matthew Effect
How does status infiltrate all of our decisions, and how is status allocated in a networked society?
Toby E. Stuart is a professor at the Haas School at UC Berkeley and also the author of the new book called Anointed: The Extraordinary Effects of Social Status in a Winner-Take-Most World.
Greg and Toby discuss the influence of social status on various aspects of life, including consumer behavior, resource allocation, and decision-making. They explore the concept of the Matthew Effect (how status leads to more status), the interplay between status and merit, and the implications of prestige in different fields such as academia, venture finance, and entertainment. The episode also examines the role of status in creating inequality and the potential benefits and challenges of implementing measures to reduce the impact of status in decision-making processes.
*unSILOed Podcast is produced by University FM.*
Episode Quotes:
The big shift why we trust the painter over the painting
12:17: What do you do when you have to make a choice about something, but you have no real ability to evaluate its quality? Right? And, you know, that is true of so many things. Like, it is true of a hotel room you have never seen before, or a restaurant you have never been to before, or, like, you know, which of these things are going to be good? And in the book, I make the argument that what you do—I call it the Big Shift—is, if you walk into a museum, say, and you see a piece of art on the wall, I mean, you know it is in the museum, but you do not know whether it is high quality or not. But then you see the artist's name, and what you do know is, it is a Picasso, and I have heard of Picasso, and he is a very famous artist. And, in theory, he makes excellent art. And because of that, this is a very good picture. This is an amazing piece of art. But what you just did there is you took the identity of the artist and you assigned it to the art itself.
Status exists only in relationships
08:41: Status is a resource that is created in a social system. So individuals and groups give status to members, but it does not exist absent the social relationship. And right there, you can see the link to social networks, because flows of deferences are forms of relationships.
Born on third base privilege and status
56:16: So there is still today the prosperity gospel, and people who are successful often believed that it was a form of pre-ordination, like they were destined to get whatever they have, you know. But the other part of it is, you know, is best summed up by, you know, this quote I have always loved. I think, you know, the providence is occasionally debated, but it is often attributed to Barry Switzer. You know this one, and it goes: he refers to someone and he says, like, “You know, that guy was born on third base, and he has always thought he hit a triple.” Right? And that is what we call privilege these days—where you have all of these advantages. You were born with the advantages, you did not earn them, but you think you did, and therefore you attribute your status to your own merit. Versus what actually happened is you were born on third base; you did not ever hit the triple.
Status on steroids in the digital age
42:19: What happens when we have these digital platforms? When we have digital platforms, like anybody can get onto Spotify or Pandora or Apple Music or whatever, and they can find any piece of music literally created. Just like, you know, 99.9% of all recorded music exists on these platforms. And so you can find anybody's music. And so anywhere in the world, you can listen to the oboist—that one oboist who is the greatest in the world. So the globalization of the audience changes the nature of what happens in the marketplace, so to speak, and in a radical way. And then, if you have a cumulative advantage process which pushes people up to the top, that unfolds on steroids if you are looking at a global digital marketplace versus the way the world used to work.