IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Central Path Dynamics and a Model of Competition. II

Listed author(s):
  • A.V. Kryazhimskii
  • J. Stoer
Registered author(s):

    Growth - the change in number or size - and adaptation - the change in quality or structure - are key attributes of global processes in natural communities, society and economics (see, e.g. Hofbauer and Sigmund, 1988; Freedman, 1991; Young, 1993). In this paper we describe a model with explicit growth-adaptation feedbacks. We treat it in the form of an economic model of competition of two firms (with several departments) on the market. Their size is measured by their capital, and their quality by their productive power (production complexity). It is assumed that the production complexity of a department or firm is a simple function (that is more general than the one considered in Krazhimskii and Stoer, 1999) of its capital. The model works on both the firm level (competition among the departments) and the market level (competition among the firms). The model shows some empirically observable phenomena. Typically, one of the firms will finally cover the market. The winner is not necessarily the firm with the potentially higher maximum productivity. A long-term coexistence of firms may arise in exceptional situations occurring only when the maximum potential productivities (not the actual productivities) are equal. The analysis is also based on the concept of central paths from the interior point optimization theory (see Sonnevend, 1985; and e.g., Ye, 1997).

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    Paper provided by International Institute for Applied Systems Analysis in its series Working Papers with number ir00018.

    in new window

    Date of creation: Mar 2000
    Handle: RePEc:wop:iasawp:ir00018
    Contact details of provider: Postal:
    A-2361 Laxenburg

    Phone: +43-2236-807-0
    Fax: +43-2236-71313
    Web page:

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    in new window

    1. Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
    2. Friedman, Daniel, 1991. "Evolutionary Games in Economics," Econometrica, Econometric Society, vol. 59(3), pages 637-666, May.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:wop:iasawp:ir00018. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.