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

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Listed:
  • Glazer, Amihai

    (University of California, Irvine)

  • Kanniainen, Vesa

    (University of Helsinki)

  • Poutvaara, Panu

    (University of Munich)

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.

Suggested Citation

  • Glazer, Amihai & Kanniainen, Vesa & Poutvaara, Panu, 2004. "Initial Luck, Status-Seeking and Snowballs Lead to Corporate Success and Failure," IZA Discussion Papers 1426, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp1426
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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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