Price is what you pay. Value is what you get.

Thursday, September 13, 2007

Principle of Cumulative Advantage

Duncan Watts, author of Six Degrees, on Cumulative Advantage:

... when people tend to like what other people like, differences in popularity are subject to what is called “cumulative advantage,” or the “rich get richer” effect. This means that if one object happens to be slightly more popular than another at just the right point, it will tend to become more popular still. As a result, even tiny, random fluctuations can blow up, generating potentially enormous long-run differences among even indistinguishable competitors — a phenomenon that is similar in some ways to the famous “butterfly effect” from chaos theory.