This simple model simulates the classic Polya problem in which stones, either black or white, are randomly selected from a pot. The user begins with two stones, one of each color. From then on, the odds of selecting a particular color are equal to the proportion of that color currently in possession. This problem helps to illustrate the ´snowball effect´ in which early business successes can lead to long-term dominance within an industry.
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See Also Other business and financial models
Other general GoldSim models