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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.

Despite overall physiological bilateral symmetry, many species exhibit

lateralized biases, i.e., preferences for right- or left-oriented behavior. When

approaching prey, for example, some predator species favor their right eye; some

prey species respond more quickly when their left eye detects a predator. Similar

behavioral asymmetries occur in humans. Most notable is right- and lefthandedness; less notable is the tendency to turn right when entering a room.

Paul Farnsworth found that more successful students tended to choose seats near

the front, a little to the right. He argued that external factors such as teacher

location might have affected this lateral bias. But it is now known that processing

differences between the two brain hemispheres can also contribute to behavioral

asymmetries.

George Karev found that when presented with a movie theater seating

diagram, right-handed people were more likely than left-handed people to choose

a seat on the right, facing front. But he hypothesized that, since the right

hemisphere processes visuospatial and emotional information, the people who

chose right-side seats did so because that would put the screen in their left visual

field, optimizing information flow to the right hemisphere.

Although the right hemisphere is thought to be dominant in processing

emotion, some evidence suggests that the left hemisphere plays a role. The

valence model proposes that the left and right hemispheres process positive and

negative emotion respectively, while the approach-withdrawal model posits that

the left hemisphere processes emotion expressed in approach behavior and the

right hemisphere processes emotion expressed in withdrawal behavior.

Victoria Harms and colleagues suggested that since a paper seating plan was

used in the theater-seating studies by Karev and others, the exhibited preference

might be due simply to handedness: people choose the same side of the paper as

their favored hand. Consequently, the Harms research was designed to study

choices in an actual movie theater. Also, hoping to distinguish between various

explanations, they studied seating choices for comedies (presumed to contain

Positive emotional content), dramas (presumed to contain negative emotional

content), and documentaries (presumed to have balanced emotional content).

They found significant—though not universal—preference for seats on the right,

facing front, regardless of movie genre and of handedness.