In this paper we propose a locally interactive model which explains both the cross sectional dynamics as well as the possibility of multiple long run equilibria. Firms can choose between two technologies say 1 and 0; the returns from technology 1 are affected by the number of neighboring firms...

We study a simple model of public opinion formation that posits that interaction between neighbouring agents leads to bandwagons in the dynamics of individual opinions, as well as in that of the aggregate process. We show that in different specifications of the model, there is a tendency for the...