Spillover Effects

Questions

What is Spillover Effects?

Spillover Effects are the side effects of a choice that reach people outside the decision. Some are harmful, like pollution or noise. Others are powerful gifts, like talent and knowledge that spread from one company to seed a whole industry.

How do you use Spillover Effects?

Before you act, ask who else will feel the impact. Look for ways to create positive spillovers, by sharing what you know, supporting your community and modeling healthy habits for the people around you.

When does Spillover Effects matter?

Spillover Effects is one of the 40 mental models for fixing problems, the situations where you ask: Why does this keep going wrong, and how do I fix it for good? Within that, it belongs to “When fixes backfire”, alongside Blowback, Cobra Effect and Collateral Damage.

What is an example of Spillover Effects?

Two stories show it at work: The traitorous eight (1957) and The PayPal Mafia (2002). Both are told in full in The Mental Models Daily Almanac, which has two stories for each of its 365 models.

Which mental models are related to Spillover Effects?

Market Failure, Free Rider Problem and Institutional Knowledge. Spillover Effects itself comes from economics.