Mazzucato, M;
(1998)
A computational model of economies of scale and market share instability.
Structural Change and Economic Dynamics
, 9
(1)
pp. 55-83.
10.1016/S0954-349X(97)00037-4.
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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.
| Type: | Article |
|---|---|
| Title: | A computational model of economies of scale and market share instability |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1016/S0954-349X(97)00037-4 |
| Publisher version: | https://doi.org/10.1016/S0954-349X(97)00037-4 |
| Language: | English |
| Additional information: | Copyright © 1998 Published by Elsevier B.V. This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. |
| Keywords: | Industry life-cycle; Market share dynamics; Replicator equations; Simulation; C63; L11; O30 |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > Inst for Innovation and Public Purpose |
| URI: | https://discovery.ucl.ac.uk/id/eprint/1553102 |
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