Admission Tests GMAT - Graduate Management Admission Test (2022)

Organizations that produce similar goods tend to concentrate in the same geographic area (geographic concentration of production). Economic explanations of such industrial agglomeration explicitly emphasize better performance, and implicitly emphasize lower failure rates, as the key processes contributing to this geographic concentration. Sometimes Industries benefit economically from situating themselves in particular locations that offer intrinsic advantages such as access to scarce raw materials or proximity to consumers. In other cases, regardless of the particular location, the colocation of structurally equivalent organizations—those that operate in the same markets—may itself yield advantages such as common labor markets and knowledge spillovers.

Sorenson and Audia point out that these explanations Ignore the fact that structurally equivalent organizations also compete with one another for vital resources, and colocation would be expected to increase such competition. Organizational ecology studies support this expectation by showing that organizations apparently compete more intensely within local population boundaries.

Sorenson and Audia propose instead that what maintains geographic concentration is entrepreneurial opportunity, which leads to higher founding rates. Dense local concentrations of structurally equivalent organizations increase the pool of potential entrepreneurs in a region. Beginning entrepreneurs need exposure to existing organizations in the industry to acquire knowledge of the business, ties to scarce resources, and self-confidence. The existing geographic concentration of production constrains access to these resources, so that new founding’s tend to reinforce geographic concentration.

Members of many primate species approach an opponent shortly after conflict and initiate behaviors such as embracing, grooming, or huddling—a phenomenon researchers call postconflict reconciliation. Existing research, however, suffers from several shortcomings. The variability between groups of the same species is rarely addressed; the majority of studies investigate only a small fraction of the pairings that exist in a given group; and almost all reports are restricted to animals in captivity.

In an attempt to address some of these shortcomings, Sommer et al. recently conducted a study of postconflict reconciliation in wild Hanuman langurs, a species of colobine monkey. They observed rates of postconflict reconciliation much lower than would be expected based on previous research, and found that over 80 percent of all pairings exhibited no postconflict affinity whatsoever. The rarity of friendly postconflict reunion in wild langurs draws attention to the possibility that conflicts are modulated through avoidance. The option of temporarily avoiding contact with opponents is not easily available to captive primates, and certainly not to the extent present in the wild. Still, studies of postconflict behavior of primates in captivity remain valuable: above all, they demonstrate the flexibility of nonhuman primates in various environments. It is likely, however, that the reported frequency of reconciliation among primates is artificially inflated by the conditions of captivity.