The Winner-Take-All Society: Why the Few at the Top Get So Much More Than the Rest of Us

285 Pages·1996·4.55 MB·English

by  Robert H. Frank

PENGUINB OOKS
THE WINNER-TAKE-ASLOLC IETY
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The
Winner-Take-All
Society
Whyt heF ewa tt heT opG etS o
MuchM oreT hant heR esotf U s
ROBERTH .F RANK
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PHILIPC OOK
PENGUIN BOOKS
PENGUIBNO OKS
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THEL IBRAROYF C ONGRESHSA SC ATALOGUTEHDE H ARDCOVEARS F OLLOWS:
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thaistth anllo tb,yw ayo ft raodroe t herwbiesl ee,nr te,- shoilrdoe,ud to ,ro ther­
wiscei rcuwliatthetodhu petu blisphreicroo'rns s ienan ntfy o romfb indoirn g
cover tohtathnhe airtnw hiicithps u bliasnhwdei dt haos uitm icloanrd ition
inclutdhicinosgn dibteiionng iomnpt ohsseue bds eqpuuerncth aser.
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Contents
PrefacVell
AcknowledgmenIXt s
1.W mner-TakMea-rAklelt s 1
2.H owW mner-TakMea-rAklelAt rsi se 23
3.T heG rowht ofWmner-TaMkaer-kAeltls 45
4.R unaway Inactto hmTee osp 61
5.M inor-LeSaugpueer stars 85
6.T ooM anyC ontestants? 101
7.T heP robloefWm a steIfunlv emsetnt 125
8.T heB attfloeEr d ucatiPorneaslt ige 147
9.C uribngW asteCfuolm petition 167
10.M ediaan dC ultuirnte h e Wmner-Take-All So1c8i9e ty
11.O lWd me inN ewB otltes 211
Notes 233
Bibliograph2y4 7
Index2 61
Preface
I
maginteh ayto ua ndt wof riehnadvsbe e etno ltdh aatn a nonymous
benefachtaosdr o nattehdr eheu ndrtehdo usadnodl latrods i vide
amonygo uH.o w woulydo us pliittIf? y oua rlei kmeo spte oplyeo,u
woulidm mediaptreolpyo ans ee quadli visionh-uonnder tehdo u­
sanddo llpaerprse rson.
Yetd espiittoesb viofuosr cteh,ea ttracotfei qouna liisft ayfrr o m
absoluItned.e eidti, sq uickltyru mpebdy o thecro ncewrnsh enw e
make trhuelf eosdr i stributiinngm owdeeamml atrhk eetc onomies.
Wealtahf,ta ellrg, e nerdaolelsycn o'mtef roamn onymobuesn efactors;
wem usptr oduicteIn. a l aregceo no,mif y eacphe rswoenr geu aran­
teeadn e quaalm ounotfi ncomfee,ww oulidn veisnet d ucatoirio nn
developsipnegct iaalle nftesww, o ulwdo rkh aradn dt akrei skWse.
thucso nfrano natg oniztirnagd e-tohfeefc ,o nomitsetlusslb , e tween
equalaintdey c onompirco spteyA.rn ids oif,o nlrye luct,wa ena tclqyui­
escteom arkfeotr cwehsi,cr he wapredo pilnre o ugphr oporttoit ohne
markveatl uofet hteh intghsep yr oduce.
Inr eceyneta rhso,w evoeurr,wil lin gnestso r eloyn m arkefto rces
hasb ecomset rainaestd h sea larioeft so pp erformehrasvg er owenx ­
plosievveelanys m ospte ophlaev set ruggtloh eodl tdh eoiwrn T. hese
changleesnn de wu rgentcooy u rq uesttou nderstwahnysd o mep eo­
pleea rns om uchm orteh aont hers.
The usuaelx planatoifio nncso mdei fferetnackeoesn eo ft wo
tackTshe. fi rsetm phasiiznedsi vipdruoadlu ctainvdri etlya qteuda li­
tieisn,c ludeidnugc ateixopne,r ieunncieq,ut ea lenttesm,p erament,
drivaen,di ntelligeTnhecs ee.c osntdr estshseets r ucotfuo rpep ortuni-
Vlll Pr/aece
tieass,s ertthianttgh en umbeorfg oojdo bissl imiatneddt haatl ­
thoutgahl eanntde fforatrc el eairmlpyo rtlauncatkn, dw hoy ouk now
alsmoa tter.
Botphe rspecsteievmte ocs a ptuirmep ortant oeflr eematelyn,it s
buwth icphr ovitdhebese ttaecrc ouonfrt e cetrnetn dIss?gr owinign ­
equalliatrygt ehlreye suolfat n i ncreiants hede i spaorfii ntdyi vidual
abili(taiase r se cebnets t-sTehlBleee rll, Cwuorvuelhd,a vues b e­
lievOer)d ?o eisst t efmr ocmh angients e chnotlhoahgtay v ceo ncen­
tratmeodr aen dm orlee veriantg heee c onomtyo'ppso sitions?
Thet itloefo ubro ogki vaewsa oyu arn swWeerb :e litehvaietit st he
distribuotfoi popno rtunniotitte hsed, i stribouftt ailoentn htah,ta s
beecnh angiinntg h lea tswte nyteya Trhse.r easfoontr h is issph artliyft
technoloAsgi tcharele .v oluitnii nofno rmaptrioocne sasnidtn rga ns­
missicoonn tintuheesir,sie n creasingf oltreh vteea rlaeognfett hso se
whoo ccutpoypp o sitainodcn osrr espondliensrgsol oyfm o ort hetros
finda l ucrantiicvhInee e.ff ectth,re e ward stcruocmtmuoirnnee nter­
tainmaenndts ports-wthheorues acnodmsp eftoear h andfuolfb ig
prizaetts h teo p-hnaosw p ermeamtaendoy t hseerc toofrt she ec on­
omy.W e will descrtihbfeeo rctehsah ta vcea ustehdit sr enadn de x­
plotrhee viarr ieocuosn omsiocc,ia anldc, u ltucroanls equences.
Oura nalysis fidtco eosmnf'otr tianbtlaoyn yonei ntellectual
campW.e proceaesed c onomiasrtmsew,di tthh per esumptthiaotn
markewtosr ka ndo bserved trendusn derrelfeylcieoncgnt o mic
forcBeus.tu nlimkaen ye conomiwset cso,n clutdheam ta rkets
havenb'etes ne rvitnhgep ublic interewsetl olfel sapteec-iianl­ly
deedt,h amtu cho ft hrei vaflorsryo ciettoypp' rsi ziesbs o th costly
andu nproducAtniduv neli.k vei rtuaalolltl hyee cro nomiwsect osn,­
cludteh arti siinnge quailismt oyr lei kteolcy u rtatihla tnos timulate
economgriocwt h.O urm essaigste h uash opefounleIn : t hwien ner­
take-saoelctliyc ,o operaatgirveee mteonr tesd utchese i zoeft hteo p
prizaensdc ursbo mfeo rmosfc ompetinteieondno tl eaidn evitably
tos ociasliqsuta lOonrt .hc eo nrta,rs yucahg reemaernteth ske e ty oa
moreeq uitaabnmldoe r per ospefurtouurse .
Acknowledgments
O
urw orokn t hper ojbeecgta fno rmailn1l 9y8 8b,u to urc ollabora­
tiorne adllaytfr eosm c onversaatsci loansss maantdoe ffisc em ateisn
Berkeleecyo'nso mPihc.sDp .r ogrmaomr teh atnw entyy-efiavaregs o .
Du�itnhgee n suiynega rwsew, o rkseedp araotnte hleeyc onomoifc s
statcuosm petiatnidoo fpn a rticipianlt oitotne Triheesste.w oa reaats
firsste emetdoh avlei titncl oem monb,u ats t he1 980psr ogreists ed
becamaep partehnatt ctohmep etiftoisroo nc iettoypp' oss itwiaosn s
becomimnogr aen dm orlei kpea rticipianat l iootnt Aenrdywi .t ht his
realizcaatmieto hned ecistioom ne rgoeu rr eseaprrcohg raamnsd
begiwno rokn T hWei nnerT-ake-SAollci .e ty
Aso urp rojeucntf oldweedh ,a vbee nefitferdo am dvifcreo m
manyq uartOeurrsg. r eatceusmtu ladteibvitest ot hosweh os uf­
fered througrhe ppororontog sur rew sosr kF.o rt hecioru ntless use­
fuslu ggestainodin nss igwhett sh,a ntkh ep articiipnfa anctusl ty
seminaartBs e rke,l BeiynghamtBorni,t ish CoClaurmlbeitao,n ,
CentefroA rd vancSetdu diynth e BehaviSocriaeln cCehsi,c ago,
ClaremoGnrta duaStceh ooClo,l umbiCao,r neClolr,n eLlalw
SchooDla,l houDsuikee,G, e orgMea sonG,e orgSitaa tGee,o rgia
TechG,u elpHha,rv arHda,rv arBdu sinSecshso oIlo,w aL,a fayette,
LondoSnc hooolfE conomiMcisa,m oif O hioM,I T,N ational
BureaoufE conomRiecs earNcehw,M exicoN,o rthwesOtheiron ,
StatOer,e g,oP nennsylvRaunsisaSea,lg lFe o undatSiaonntC,al ara,
SoutheCranl ifoSrntiaan,f oSrtda,n fLoarwdS chooTlo,r onLtaow
SchooTlu,ft sW,a shington, WashLionugiWtseo,sn l-eSytWa.en s,t ­
ernO ntarWiiol,l iaanmdsY ,a lLea wS chool.