In the Tipping Point, Malcolm Gladwell said most people are referred by acquaintances, not close ties. Networks give you access to these people and their information is not perfect.
I'm only arguing your first point that networks expand returns on ability. This is just like VC's in the startup world. There are some very good startups that get few meetings with big investors because they have no connections. Even if you have a good product (or are smart), you can go unnoticed. Network expands ability, but the network's vision is limited to the acquaintances of the few people who are in it.
I'm only arguing your first point that networks expand returns on ability. This is just like VC's in the startup world. There are some very good startups that get few meetings with big investors because they have no connections. Even if you have a good product (or are smart), you can go unnoticed. Network expands ability, but the network's vision is limited to the acquaintances of the few people who are in it.