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

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Author Info
Glazer, Amihai (University of California, Irvine)
Kanniainen, Vesa (University of Helsinki, CESifo and HECER)
Poutvaara, Panu () (CEBR, CESifo and IZA Bonn)

Additional information is available for the following registered author(s):

Abstract

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

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Publisher Info
Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 1426.

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Length: 24 pages
Date of creation: Dec 2004
Date of revision:
Handle: RePEc:iza:izadps:dp1426

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Related research
Keywords: industry equilibrium initial luck status effects snowball

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Find related papers by JEL classification:
L00 - Industrial Organization - - General - - - General
L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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