By Duncan Watson
We’re sitting in Norfolk twiddling our thumbs. We’re dreading another visit to the zoo to keep the kids quiet. Lou pipes up “I’m bored, let’s go to Sardinia”. Zooming off to Stansted Airport at 2 in the morning and, hours later, we’re made it to Cagliari. A wave of heat hits us. Its 39 degrees. Lou remarks “you know I really don’t like hot weather”. I whine back “neither do I, I thought you did”. The lament keeps coming as this moan is diligently repeated, admittedly with extra lower lip tremble, by the two kids: Eadlin and Lufian.
I’m making that up of course. It never happened. It’s extraordinarily beautiful here. I’m playing with your heartstrings and twisting the ‘Bus to Abilene’. An anecdote used by the US Army to advertise the dangers of being a follower, it’s on page 52 of the book that I’m reading as the kids snorkel off the pristine Cea beach: Susan Cain’s ‘Quiet: The Power of Introverts in a World That Can’t Stop Talking’.
So, what is this book about? Let’s start by asking you a question: are you an introvert or an extrovert? Perhaps you need a little clarification before jumping in? Are you assertive? Do you prefer talking, rather than listening? Do you tend to speak before thinking? Do you prefer company to solitude? Are you happy with aggressive environments? Then Cain says you can wear your extroverted neon badge with pride! Alternatively, do you prefer an inner circle of close friends? Do you prefer writing to talking? Do you think before you speak? Do you dislike unnecessary conflict? Then she reckons that you can wear those introverted comfy slippers instead!
Why might this distinction be important for economics? We can start with reference to decision-making processes. The extrovert is less likely to be risk averse and will embrace multi-tasking. The introvert, in contrast, will be more plodding but less likely to make error. Cain uses this distinction within the realm of asymmetric information. There’s pros and cons associated with both types of people. The introvert will go on a fact-finding mission. Only when they have acquired enough information will they make a decision. That sounds like we can assume profit maximization behaviour holds. Indeed, being focused on ensuring completion of their task, we can laud their productivity. The extrovert, however, sees potential calamity in that approach. A leader should radiate confidence. To do otherwise may give investors the jitters: “Speak with conviction. Even if you believe something only fifty-five percent, say it as if you believe it a hundred percent” (p.47).
We can go further mind you and seep into adverse managerial economics comment. To derive our tut, let’s shift emphasis from a static environment to a dynamic one. Let’s model time. How might the introvert and extrovert promotion experiences be affected? We’d hope that their performance would dominate. But might the extrovert have an additional advantage? Talkability. Cain notes “…groups of students were asked to solve math problems together and then to rate one another’s intelligence and judgment. The students who spoke first and most often were consistently given the highest ratings, even though their suggestions (and math SAT scores) were no better than those of the less talkative students” (p. 51). The extrovert then is more likely to be promoted up the ranks. The louder, rather than the more capable, may well carry the day.
Could this book also have relevance to my research in the economics of education? Cain focuses her attention on the Harvard Business School model, referring to how speaking with conviction is cultivated: from socialization becoming an extreme sport to the student newspaper offering sweet advice such as “How to Think and Speak Well- On the Spot” (p.47). Could a similar understanding be applied to the UK? Take the report Elitist Britain 2019 (https://www.gov.uk/government/publications/elitist-britain-2019). Looking at the educational background of our top professionals, the authors are downbeat over their findings: “The report paints a picture of a country dominated by a small elite: the 7% who attend independent schools, and the roughly 1% who graduate from just two universities, Oxford and Cambridge. In fact, two fifths (39%) of the elite group as a whole were privately educated, more than five times as many as the population at large, while a quarter (24%) had graduated from Oxbridge”. Could these power divides reflect the impact of an extrovert double whammy? First, an elite trained to be confident speakers and therefore get ahead. Even if they suffer from knowledge deficiencies, they are still capable of oozing self-assurance. Second, creation of a greater social network and a higher position within that social hierarchy. This is essentially superior social capital which may well out-trump standard human capital.
I think I will stop here in my musings. I’m tempted to use this comment to quiz our “who will be our next PM?” debate. However, the Mediterranean water is crystal clear and my boy wants to ride his inflatable crocodile. Arrivederci!