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Simple models of firms emergence

Author

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  • Weisbuch, Gérard
  • Mangalagiu, Diana
  • Ben-Av, Radel
  • Solomon, Sorin

Abstract

We present a dynamical model of the emergence of firms as opposed to a flat labour market where entrepreneurs would recruit workers for each business opportunity. The model uses a preferential choice of partners based on previous collaborations experience. A sharp transition in the parameter space separates an ordered regime, where preferential links establish, from a disordered regime corresponding to a fast turnover of employees.

Suggested Citation

  • Weisbuch, Gérard & Mangalagiu, Diana & Ben-Av, Radel & Solomon, Sorin, 2008. "Simple models of firms emergence," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(21), pages 5231-5238.
    • Handle: RePEc:eee:phsmap:v:387:y:2008:i:21:p:5231-5238
    DOI: 10.1016/j.physa.2008.05.032
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    References listed on IDEAS

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    1. Chang, Myong-Hun & Harrington, Joseph Jr., 2006. "Agent-Based Models of Organizations," Handbook of Computational Economics, in: Leigh Tesfatsion & Kenneth L. Judd (ed.), Handbook of Computational Economics, edition 1, volume 2, chapter 26, pages 1273-1337, Elsevier.
    2. Marengo, L, 1992. "Coordination and Organizational Learning in the Firm," Journal of Evolutionary Economics, Springer, vol. 2(4), pages 313-326, December.
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    1. García-Díaz, César & Moreno-Monroy, Ana I., 2012. "Social influence, agent heterogeneity and the emergence of the urban informal sector," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(4), pages 1563-1574.

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