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to reinterate what Jere has said in a slightly different way - the point of the Lipps(-Signor) Effect is that is establishes the correct null hypothesis against which to measure the observed patterns in the fossil record. Contrary to Peter Harries comments, the L(-S) Effect is PRIMARILY a preservational phenomenon. The effect is exacerbated by collecting bias and can be reduced by increased collecting effort. However it cannot be completely negated by increased collecting. Correctly identifying the null hypothesis is critical in all of this, and is all to infrequent in paleontology. Doug Erwin
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