Modelling market competition by Generalised Lotka Volterra system: a case in Sri Lankan mobile telecom market

A.W. Wijeratne, J.A. Karunaratne, Jian Fang and Junjie Wei

International Journal of Indian Culture and Business Management, 2008, vol. 1, issue 4, 421-433

Abstract: The Generalised Lotka-Volterra (GLV) formulation has been used in this paper to model the competitive situations in market economics. The stability analysis was carried out to define monopoly, oligopoly and perfect competition. A stepwise numerical procedure was carried out using data from mobile telecom sector in Sri Lanka in order to illustrate the duopoly. According to the stability theory, the long-term coexistence equilibrium of the two competitors has been obtained. The study shows that the GLV model consists of components that are core issues in antitrust analysis. Therefore, it has been proposed that GLV should be used as a basis to develop more comprehensive tool for competition policy formation in its turn would increase the social wealth ensuring the long-term survivability of the competitors.

Keywords: coexistence equilibrium; Lotka-Volterra formulation; stability analysis; modelling; market competition; Sri Lanka; mobile telecommunications; mobile phones; cell phones; antitrust analysis. (search for similar items in EconPapers)
Date: 2008
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