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Law of the jungle: firm survival and price dynamics in evolutionary markets

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  • Brendan Markey-Towler

    (University of Queensland)

Abstract

In this paper I develop a simple, and general model of supply and demand within which almost any theory of consumer and producer behaviour may be integrated by varying parameters. I then investigate the dynamics of this model and its implications for the theory of market evolution, and show that it unifies a number of insights from evolutionary economics. I extend upon these evolutionary theories and also characterise the distribution of prices across the market and investigate its evolution over time.

Suggested Citation

  • Brendan Markey-Towler, 2016. "Law of the jungle: firm survival and price dynamics in evolutionary markets," Journal of Evolutionary Economics, Springer, vol. 26(3), pages 655-696, July.
    • Handle: RePEc:spr:joevec:v:26:y:2016:i:3:d:10.1007_s00191-016-0446-8
    DOI: 10.1007/s00191-016-0446-8
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    Cited by:

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    2. Brendan Markey‐Towler, 2018. "Schumpeter's Price Theory," The Economic Record, The Economic Society of Australia, vol. 94(307), pages 512-514, December.
    3. Allen, Darcy W.E. & Berg, Chris & Markey-Towler, Brendan & Novak, Mikayla & Potts, Jason, 2020. "Blockchain and the evolution of institutional technologies: Implications for innovation policy," Research Policy, Elsevier, vol. 49(1).
    4. Jiao, Jian-ling & Zhang, Xiao-lan & Tang, Yun-shu, 2020. "What factors determine the survival of green innovative enterprises in China? -- A method based on fsQCA," Technology in Society, Elsevier, vol. 62(C).
    5. Harry Bloch, 2018. "Neo-Schumpeterian price theory with Sraffian and post-Keynesian elements," Journal of Evolutionary Economics, Springer, vol. 28(5), pages 1035-1051, December.
    6. Isabel Almudi & Francisco Fatas-Villafranca & Jesus Palacio & Julio Sanchez-Choliz, 2020. "Pricing routines and industrial dynamics," Journal of Evolutionary Economics, Springer, vol. 30(3), pages 705-739, July.
    7. Lee, Jun-won, 2021. "Analysis of technology-related innovation characteristics affecting the survival period of SMEs: Focused on the manufacturing industry of Korea," Technology in Society, Elsevier, vol. 67(C).
    8. Brendan Markey-Towler, 2018. "Antifragility, the Black Swan and psychology," Evolutionary and Institutional Economics Review, Springer, vol. 15(2), pages 367-384, December.
    9. John Foster, 2017. "Prior Commitment and Uncertainty in Complex Economic Systems: Reinstating History in the Core of Economic Analysis," Scottish Journal of Political Economy, Scottish Economic Society, vol. 64(4), pages 392-418, September.
    10. Harry Bloch & Stan Metcalfe, 2018. "Innovation, creative destruction, and price theory," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 27(1), pages 1-13.

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    More about this item

    Keywords

    Differential survival and growth; Price theory; Firm strategy; Innovation; Competitive selection;
    All these keywords.

    JEL classification:

    • D00 - Microeconomics - - General - - - General
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D40 - Microeconomics - - Market Structure, Pricing, and Design - - - General
    • D49 - Microeconomics - - Market Structure, Pricing, and Design - - - Other
    • C00 - Mathematical and Quantitative Methods - - General - - - General

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