The bandwagon effect works through a self-reinforcing mechanism. It expands using positive feedback loops, which means that the effect becomes stronger as more people join. The Bandwagon Effect in Economics It is important to understand how the bandwagon effect is described in economics because it ...
The bandwagon effect has been identified inbehavioral economicsas well. Investing and financial markets can be especially vulnerable to bandwagon effects because not only will the same kind of social, psychological, and information-economizing factors occur, but additionally the prices of assets tend to...
Examples Of The Domino Effect On The Crucible The DominoEffectis the cumulativeeffectwhen one event sets off a chain of other events. Thiseffecthas happened multiple times throughout history‚ the two largest examples being The Red Scare of the 1950s and the Salem Witch Trials of the 1600s...
In this section, we identify the long-run equilibria of our model. We observe that the relative size of the maximum neighborhood, which we define as k=M/(n−1), has a critical effect on the long-run outcomes. Conclusion We consider a situation where players have discretion to choose th...
a bandwagon emerges. A spin-off effect of these parameter values it that the model sets the conditions forambiguityover how, and under what circumstances, bandwagons may emerge or not. The parametervicinityis better understood in relation to the set of conditions forambiguity(Carley1995; Rosenkopf...