TY - JOUR
T1 - Competition and welfare for a stochastically fluctuating market with irreversible decisions
AU - Fujita, Yasunori
N1 - Copyright:
Copyright 2008 Elsevier B.V., All rights reserved.
PY - 2008/5/1
Y1 - 2008/5/1
N2 - The present paper, in the sprit of econophysics, attempts to shed new light on the aspect that was missed in the traditional economic analysis. More precisely, the present paper combines the optimal stopping model and the economic model into a single structure and examines the relationship between the competition and the welfare, which has been a major focus of the recent economic analysis. The main finding is that in a stochastically fluctuating small market, suppression of the competition increases the growth rate of the welfare-stochastic version of the 'excess entry theorem.'.
AB - The present paper, in the sprit of econophysics, attempts to shed new light on the aspect that was missed in the traditional economic analysis. More precisely, the present paper combines the optimal stopping model and the economic model into a single structure and examines the relationship between the competition and the welfare, which has been a major focus of the recent economic analysis. The main finding is that in a stochastically fluctuating small market, suppression of the competition increases the growth rate of the welfare-stochastic version of the 'excess entry theorem.'.
KW - Excess entry theorem
KW - Homogeneous products
KW - Irreversible decision
KW - Optimal stopping theory
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U2 - 10.1016/j.physa.2008.01.004
DO - 10.1016/j.physa.2008.01.004
M3 - Article
AN - SCOPUS:40249095895
SN - 0378-4371
VL - 387
SP - 2846
EP - 2850
JO - Physica A: Statistical Mechanics and its Applications
JF - Physica A: Statistical Mechanics and its Applications
IS - 12
ER -