Abstract
Industrial organization economists commonly regard realized profit as a test of the viability of production techniques. The concept of a profit-responsive selection mechanism id defined for a dynamic model of competition among techniques. For a class of symmetrie economic environments, an auxiliary function is presented whose maxima correspond to the stable equilibria of the original dynamic system. Given knowledge of the relevant technology, and exogenous supply and demand conditions, stability analysis can be carried out using this auxiliary function, without imposing any additional restrictions on the selection mechanism beyond the weak property of profit-responsiveness.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
