Mazzucato, Mariana (1998) A computational model of economies of scale and market share instability. Structural Change and Economic Dynamics, 9 (1). pp. 55-83. ISSN 0954-349X
Full text not available from this repository.Abstract
Replicator dynamics and computer simulation techniques are used to construct a reduced-form model which explores negative and positive feedback between the rate of a firm's cost reduction and its market share (‘dynamic’ returns to scale). Life-cycle phenomena are explored by combining positive and negative feedback in a firm's cost function. The objective of the model is to reproduce the patterns of concentration and instability found across a wide set of industries. Simulation results find that dynamic decreasing returns to scale produce instability and multiple equilibria in market shares, very different from the results generated from ‘static’ decreasing returns to scale.
Item Type: | Article |
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Schools and Departments: | University of Sussex Business School > SPRU - Science Policy Research Unit |
Subjects: | H Social Sciences |
Depositing User: | Joy Blake |
Date Deposited: | 06 Jan 2015 15:57 |
Last Modified: | 06 Jan 2015 15:57 |
URI: | http://sro.sussex.ac.uk/id/eprint/51837 |