In general, the paired-bubble concept is a powerful one. As long as participants in each bubble face a lag between the decision to spend and the realization of results, they can leapfrog one another. In period 1, company A invests; in period 2, company B invests in response. In period 3, company A’s investment creates a broader market for company B’s product, which launches in period 4; this success rebounds to company A, encouraging it to invest in another round of spending, and the process repeats.
