Read NYU economics professor William Easterly's blog, "The Tipping Point: Fascinating but mythological?"
The “tipping point” is a popular concept covering a whole range of phenomena (and a best-selling book by Malcolm Gladwell) where individual behaviour depends on the behaviour of the herd.Read the full blog here.
Its original application was to racial segregation. Nobel Laureate Thomas Schelling developed a beautifully simple model for this. Suppose that whites have different degrees of racism – some would “tolerate” higher shares of non-whites in their local neighbourhood than others. Schelling showed that even the less racist whites would still wind up exiting during tipping because of a chain reaction....
Tipping point stories are fascinating, but do we observe them in the real world? I became intrigued with this question a while ago and eventually published a paper testing the predictions of the tipping point story for its original application – racial segregation of US neighbourhoods (Easterly 2009).
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