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Initial Luck, Status-Seeking and Snowballs Lead to Corporate Success and Failure

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  • Amihai Glazer
  • Vesa Kanniainen
  • Panu Poutvaara

    ()

Abstract

Corporate success stories often resemble a snowball. We show how initial luck in hiring talented people, the resulting technological advantage, superior corporate culture, and status-seeking by workers and by consumers can make small initial differences generate large differences over time.

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Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 1216.

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Date of creation: 2004
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Handle: RePEc:ces:ceswps:_1216

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Keywords: industry equilibrium; initial luck; status effects; snowball;

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