Why is peer review important?
From PsychWiki - A Collaborative Psychology Wiki
In research, peer review it is crucial to have any study validated by peers in the field because science is structured to evaluate and assess the quality of research before it goes to publication. When a research study is done, it brings fourth claims and results that need to have significance and originality in the field because it could lead to profound findings that could help individuals in society. Unpublished research is not accepted by the psychology community or society in general and editors of scientific journals draw on a large pool of suitable experts to scrutinise papers before deciding whether to publish them.
Example / Application
Example: Stanford Prison Experiment
Application: This study was a breakthrough in the scientific field of psychology but was also deemed unethical because of the mental anguish it put on the participants. After the peer review of Milgrim's findings, the APA's ethical principles began. It insured that all future research has to follow strict guidelines for the safety of participants and to never breach ethical grounds, peer review of this study helped in developing this for research.