Models for the size distribution of businesses in a price driven market

Details Models for the size distribution of businesses in a price driven market Models for the size distribution of businesses in a price driven market

2000-08-14

arxiv.org/abs/nlin/0008018v2

Nonlinear Sciences

Adaptation and Self-Organizing Systems

12 pages, 2 figures, submitted for publication

Scientific paper

10.1007/s100510170188

A microscopic model of aggregation and fragmentation is introduced to investigate the size distribution of businesses. In the model, businesses are constrained to comply with the market price, as expected by the customers, while customers can only buy at the prices offered by the businesses. We show numerically and analytically that the size distribution scales like a power-law. A mean-field version of our model is also introduced and we determine for which value of the parameters the mean-field model agrees with the microscopic model. We discuss to what extent our simple model and its results compare with empirical data on company sizes in the U.S. and debt sizes in Japan. Finally, possible extensions of the mean-field model are discussed, to cope with other empirical data.

Affiliated with

Also associated with

No associations

Rating

Models for the size distribution of businesses in a price driven market does not yet have a rating. At this time, there are no reviews or comments for this scientific paper.

If you have personal experience with Models for the size distribution of businesses in a price driven market, we encourage you to share that experience with our LandOfFree.com community. Your opinion is very important and Models for the size distribution of businesses in a price driven market will most certainly appreciate the feedback.

Rate now

Comments { 0 }

Profile ID: LFWR-SCP-O-395231