Simulating heterogeneous corporate dynamics via the Rulkov map

Giuseppe Orlando

Structural Change and Economic Dynamics, 2022, vol. 61, issue C, 32-42

Abstract: This work deals with corporate dynamics as they emerge from mutual interaction between firms competing on the market. As it is commonly observed, corporate dynamics may oscillate between periods of fierce competition and calmer periods when companies settle in their niche. This is much like mutual synchronization and chaos regularization of bursts in a group of chaotically bursting cells modelled by the Rulkov map. We find that our framework can accommodate dynamic changes between multiple equilibria, model skewness, and idiosyncrasy even in the case of homogeneous firms. These features allow the link with empirical findings in labour and industrial economics. This paper supports the idea that nature is governed by simple laws from physics to engineering, from biology to economics, etc. For this reason, a low-dimensional deterministic model like the Rulkov map may be applied to economics and game theory for describing corporate dynamics.

Keywords: Rulkov map; Corporate dynamics; Duopoly; Chaos; Nash equilibrium (search for similar items in EconPapers)
JEL-codes: C01 C02 C6 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:streco:v:61:y:2022:i:c:p:32-42

DOI: 10.1016/j.strueco.2022.02.003

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