Increasing returns economics and generalized Pólya processes

Authors

  • Fernando BuendÍa

    Corresponding author
    1. Panamericana University-Campus Guadalajara, School of Economic and Administrative Sciences, Management Division, Ciudad Granja, Zapopan, Jalisco, Mexico
    • Correspondence to: Fernando Buendía, Economics and Administrative Sciences School, Panamericana University-Campus Guadalajara, Prolongación Calzada Circunvalación Poniente # 49, Ciudad Granja, Zapopan, Jalisco 45010, Mexico. E-mail: fernando.buendia@up.edu.mx

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Abstract

This article extends the traditional Pólya scheme consisting of one urn with two colors to the schemes where multiple independent and/or interdependent urns with multiple additions and/or withdraws and several independent and/or interdependent colors are considered. It also argues that with these schemes many complex economic systems subject to increasing returns can be formalized mathematically, for they allow for positive and negative feedbacks among many variables, “jumps,” “bad” behaved dynamics, dis continuities, and interrelation among systems. © 2013 Wiley Periodicals, Inc. Complexity 19: 21–37, 2013

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