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

Author

Listed:
  • 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.

Suggested Citation

  • Amihai Glazer & Vesa Kanniainen & Panu Poutvaara, 2004. "Initial Luck, Status-Seeking and Snowballs Lead to Corporate Success and Failure," CESifo Working Paper Series 1216, CESifo.
    • Handle: RePEc:ces:ceswps:_1216
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    More about this item

    Keywords

    industry equilibrium; initial luck; status effects; snowball;
    All these keywords.

    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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