Winner-Take-All Markets

Biological Parallel

Winner-take-all dynamics emerge from positive feedback loops that amplify small advantages. In mast seeding, a few trees that synchronize fruit production attract all the seed dispersers (squirrels, jays), leaving non-synchronized trees with zero reproduction. Preferential attachment in social networks: popular individuals gain more connections, creating power-law distributions where a few nodes dominate. Competitive exclusion operates at extreme intensity—the winner captures disproportionate resources, while losers starve. This is nature's Matthew Effect: to those who have, more shall be given.