Positive Linking: How Networks and Nudges Can Revolutionise the World

by Paul Ormerod

According to Paul Ormerod, author of the bestselling "Butterfly Economics and Why Most Things Fail", the mechanistic viewpoint of conventional economics is drastically limited - because it cannot comprehend the vital nature of networks. As our societies become ever more dynamic and intertwined, network effects on every level are increasingly profound. 'Nudge theory' is popular, but only part of the answer. To grapple successfully with the current financial crisis, businesses and politicians need to grasp the perils and possibilities of Positive Linking. Our social and economic worlds have been revolutionised by a massive increase in our awareness of the choices, decisions, behaviours and opinions of other people. For the first time in human history, more than half of us live in cities, and this combined with the Internet has transformed communications. Network effects - the fact that a person can and often does decide to change his or her behaviour simply on the basis of copying what others do - pervade the modern world. As Ormerod shows, network effects make conventional approaches to policy, whether in the public or corporate sectors, much more likely to fail. But they open up the possibility of truly 'Positive Linking' - of more subtle, effective and successful policies, ones which harness our knowledge of network effects and how they work in practice.

Genres: Economics, Business

224 pages, Hardcover

First published July 1, 2012

About the author

Paul Ormerod was the head of the Economic Assessment Unit at The Economist and the director of economics at the Henley Centre for Forecasting in England. He has taught economics at the universities of London and Manchester, and was a founder of the consulting firm Volterra. He lives in London.

Reviews

[danielle; ▵ · Rating 2 out of 5]

This book feels like a bad start to the year for me.

I read this book because it caught my eye in an essay I was reading and enjoying, but it does not seem like something worth referencing in that essay.

I don’t want to be too harsh though, because I think this book was edited in accordance with its date of publication. More specifically, I think ~recent nonfiction is watered down to appeal to a mass audience rather than an audience of experts.

I guess I thought this book would be a more academic exploration of network effects rather than a pop sci book full of anecdotes and promising not to talk about math.

Guess I’ll get a proper textbook and try to quit window shopping while I read.

[Giuseppe Veltri · Rating 4 out of 5]

Good reading for those who are not familiar with the recent network science and behavioural research literature. And yet, Ormerod synthesis is interesting about their implications for policy. It lacks details in how the idea of positive linking could be articulated in terms of intervention or a discussion of a methodology to test different options. To be fair, there are here and there insightful comments but not much more. Nevertheless, a pleasant reading to think smart about contemporary society and its complexity.

[Dylan Rankin · Rating 5 out of 5]

Paul Ormerod's Positive Linking is a fantastically insightful expose of the limits facing the youthful science of economics. Having studied this very subject at university I was immediately taken aback, almost aghast at the scale of the slander towards my precious 'faith', however Ormerod eloquently discusses the ways in which economic theory and reality have been growing further and further apart. This is a 'good read' and seeing as that is the name of the game I would highly recommend it!

[Brian Mcleish · Rating 4 out of 5]

An incredibly important book, required reading for any interested in the real-world applications of economics.

[Gerry · Rating 5 out of 5]

Awesome, just awesome. So stimulating, so much food for thought, so many connections...