Critical phenomena in the market of competing firms induced by state interventionism

Michał Chorowski and Ryszard Kutner

Physica A: Statistical Mechanics and its Applications, 2021, vol. 578, issue C

Abstract: We achieve two primary goals in this work. First, we propose a flexible algorithm that can simulate various scenarios of state/government intervention. Secondly, we analyze the scenario exhibiting the critical behavior of the market of competing firms, which depends on the degree of government intervention and the activity level of the firms. Thus, we have analyzed the second-order phase transition series, finding the levels of critical intervention and the critical exponent values. As a result, we have observed a sharp increase of fluctuations at a critical intervention level and the local breakdown of the average market technology relative to the frontier technology.

Keywords: Market of competing firms; Second-order phase-transitions; Critical phenomena; Critical threshold of state interventionism; Critical exponents (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0378437121003757
Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:578:y:2021:i:c:s0378437121003757

DOI: 10.1016/j.physa.2021.126102

Access Statistics for this article

Physica A: Statistical Mechanics and its Applications is currently edited by K. A. Dawson, J. O. Indekeu, H.E. Stanley and C. Tsallis

More articles in Physica A: Statistical Mechanics and its Applications from Elsevier
Bibliographic data for series maintained by Catherine Liu ().