Name
Abstract | ||
|---|---|---|
The behavior of the firm in a competitive market based on the idea of the human system, i.e., using a danger activator and
a defence system, is modelled. The proposed model uses three variables: market share ratio, danger index and the ratio of
relative investment between the firm and the total investments including the competition. The danger activator, the defence
and the market reaction functions, which explain how the danger index becomes activated, how the firm reacts to a danger signal,
and the market reaction to the firm’s actions, respectively, are carefully constructed. This leads to a parametric dynamic
system that governs the behavior of the competitive market. The following five classical behaviors of a firm result: monopoly,
below aimed market share, aimed market share, above aimed market share and out of market. Formulas for a sensitivity analysis
are derived to determine how and how much the equilibrium points of the dynamic system change when the parameters change.
All the concepts are illustrated by graphs that show the equilibrium points and the trajectories of the system. |
Year | DOI | Venue |
|---|---|---|
2007 | 10.1007/s10287-006-0025-9 | Comput. Manag. Science |
Keywords | Field | DocType |
Competitive action,Danger model,Organizational behavior,Competitive strategy | Dominance (economics),Market analysis,Economics,Nonmarket forces,Microeconomics,Factor market,Perfect competition,Market share analysis,Monopoly,Market share | Journal |
Volume | Issue | ISSN |
4 | 4 | 1619-697X |
Citations | PageRank | References |
0 | 0.34 | 1 |
Authors | ||
3 | ||
Name | Order | Citations | PageRank |
|---|---|---|---|
| Enrique Castillo | 1 | 555 | 59.86 |
| María Sarabia | 2 | 11 | 2.43 |
| Elena Álvarez | 3 | 35 | 4.02 |