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In this article, the reasons for the Matthew effect are analyzed;
1. Focusing effect
The Matthew effect of capital flow:
- The more profitable a company is, the stronger its strength, the better its performance, the more abundant its funds, and the less money it has, the bank will come to ask this company for a loan instead;
- For a company with poor profitability, the worse the performance, the more urgently it needs funds. Instead of continuing to lend, the bank has to withdraw the previous loan to avoid the risk of the company going bankrupt and being unable to repay the loan. It is precisely because the bank drew the loan that the company went bankrupt;
Funds will naturally gather to high-quality companies automatically;
In the same country, between different regions, money will flow to developed cities;
The central city of a certain area will siphon funds and talents here, and the surrounding area will become very poor, such as the poverty belt around Beijing and the poverty belt around Shanghai and Hangzhou;
For example: In China, all businesses go to Shenzhen, and no one will be fooled and go back to their small county to invest and do business. There is no place for ordinary people, even ordinary people worth hundreds of millions;
Funds will naturally gather in developed regions automatically;
Developed countries with a high level of economic development, reasonable financial and market mechanisms, and easy to form a focusing effect, attracting funds from all over the world to this place;
The United States has always been the number one in the world in attracting foreign investment;
When rich people in developing countries have money, they will also invest their funds in the United States, resulting in a growing shortage of funds in developing countries;
The rich Chinese will transfer to the United States if they have money, this logic is also one of the important factors;
Funds will naturally gather in developed countries automatically;
Let me mention here why China restricts the purchase of houses. All the houses in the four major first-tier cities are restricted. If they are fully liberalized, it will attract funds from all over the country to buy houses. The houses in other cities will be sold in large numbers, and a large amount of funds will flow into the first-tier cities;
Refer to the average house price in Mumbai, India, which is 75,000 per square meter, and Beijing’s is only 41,000 per square meter. Once Beijing releases restrictions on purchases, house prices will definitely double, and money from all over the country will pour into real estate in first-tier cities;
2. Lock-in effect
The lock-in effect is most obvious for high-tech products;
Users need to invest a certain amount of learning costs to use high-tech products. After users learn, they will no longer tend to buy other products;
After a few years of proficient use of Apple mobile phones, users still choose Apple mobile phones when buying mobile phones again;
Example :
- Pakistan does not buy Chinese J10 fighters, but instead buys American F16 fighters. This is because they have already used American equipment before, and using Chinese equipment requires a certain learning cost;
- This is also the reason why Iran chooses to buy Su-30 and abandon J10;
Transition costs are too high, everything from ground maintenance, to pilot training, needs to be replaced;
Lock-in effect in the job search process:
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985/211 graduates, even with poor ability, can easily enter the big factories;
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Although the students who graduated from both countries are very capable, it is very difficult to enter a large factory;
This is because the endorsement from a famous university left a deep impression on the HR of Dachang;
3. Success is the mother of success
Failure is the mother of success, it is just a consolation, failure does not make people successful, but always fails, and once is the last straw that breaks the camel's back;
As long as it is successful once, after copying this experience, it will be successful again;
The Matthew Effect of Success and Failure:
- Success will make people more confident and successful; others will have more confidence in you, be more sure of your ability, and give you more resources and opportunities;
- Success has a multiplier effect, the more successful, the more opportunities;
- Failure will make people more self-prepared and far away from success; others will not give you opportunities;
"The hemp rope is only broken at the fine point, the bad luck is only for the poor, the house leaks and it rains all night, the boat is broken and the wind hits the head; " ---- must avoid continuous failure, it will kill people;
Success is the mother of success Negative case: How did the gamblers in the casino come to be? They all won a lot of money at one time, and then they wanted to replicate this success countless times before they became gamblers;
Gambling success/lottery success cannot be replicated, and it is necessary to correctly identify which successes can be replicated and which ones cannot;
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Python
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print('马太效应')