The effect of feedback consistency on success in markets with positive feedbacks
AbstractIn this paper, we show how the finite time expected outcomes in a stochastic ball and urn model depend on the variation in feedbacks by applying the concept of second order stochastic dominance to the feedback distribution. We find that less variation leads to greater expected outcomes.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 114 (2012)
Issue (Month): 3 ()
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Urn model; Positive feedbacks; Stochastic dominance;
Find related papers by JEL classification:
- L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
- C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
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