Keywords
economic systems, dynamic models, control theory, cooperation
Abstract
This paper demonstrates the utility of systems and control theory in the analysis of economic systems. Two applications demonstrate how the analysis of simple dynamic models sheds light on important practical problems. The first problem considers the design of a retail laboratory, where the small gain theorem enables the falsification of pricing policies. The second problem explores industrial organization using the equilibria of profit-maximizing dynamics to quantify the percentage of a firm’s profits due strictly to the cooperative effects among its products. This ”Value of Cooperation” suggests an important measure for both organizational and antitrust applications.
Original Publication Citation
N. Tran, W. Weyerman, C. Giraud-Carrier, K. Seppi, S. Warnick, and R. Johnson. "Studies in the Dynamics of Economic Systems." In Proceedings of the IEEE Conference on Control Applications, 25.
BYU ScholarsArchive Citation
Giraud-Carrier, Christophe G.; Seppi, Kevin; Tran, Nghia; Warnick, Sean C.; Weyerman, W. Samuel; and Johnson, R., "Studies in the Dynamics of Economic Systems" (2005). Faculty Publications. 1006.
https://scholarsarchive.byu.edu/facpub/1006
Document Type
Peer-Reviewed Article
Publication Date
2005-08-31
Permanent URL
http://hdl.lib.byu.edu/1877/2605
Publisher
IEEE
Language
English
College
Physical and Mathematical Sciences
Department
Computer Science
Copyright Status
© 2005 IEEE. Personal use of this material is permitted. However, permission to reprint/republish this material for advertising or promotional purposes or for creating new collective works for resale or redistribution to servers or lists, or to reuse any copyrighted component of this work in other works must be obtained from the IEEE.
Copyright Use Information
http://lib.byu.edu/about/copyright/