Citation
The Winner-Take-All Society
TL;DR
Technology enables winner-take-all market structures
Analyzes how technology and globalization create winner-take-all markets with extreme income concentration. Shows that small differences in performance translate to enormous differences in rewards when technology enables top performers to serve global markets.
Explains rising inequality as structural consequence of market expansion rather than purely merit differences, with implications for policy and organizational compensation.
Key Findings from Frank & Cook (1995)
- Technology enables winner-take-all market structures
- Small performance differences yield huge reward differences
- Globalization amplifies superstar effects
- Explains rising income concentration