The Market Structure Simulation of Heterogenous Firms

Abstract

The paper aims at the need for economic policy evaluators to assess how and whether specific measures can influence the development of markets in a way that achieves greater wealth. Therefore, this study concentrates on well-documented firms’ heterogeneity that significantly impact their ability to compete, influence the market structure, and decide to participate in trade. For the initial attributes and features of the simulated model, we chose Ottaviano demand function. However, we took a different approach regarding demand and its elasticities in the market by employing distributional functions to model the market demand and the demand for each firm’s product. Allowing for the evolution of the market structure, the model reveals the importance of endowment factors and suggests the crucial role of firms’ abilities to compete. What is more important—it affects the time needed for the market structure formation. Although the model does not track all the aspects of a firm’s heterogeneity, it might guide economic policy makers to not only support the business in increasing its capabilities but keep it struggling over the competition to impede the collecting of Ricardian rents.

Digital platforms in health care: evaluating workers' expectations and profiles during pandemic time

“…The presence of the digital divide also determines difficulties to implement geographic information system pandemic time. It is evident that in this case, smart hospital (SH) and digital platforms (Marino & Pariso, 2021c;Burinskas & Tvaronavičienė, 2021), as an information system implementation represents an important but unrealized domain. During this coronavirus period, the communication (Sanders et al, 2020) with support of information technologies is a strategic resource.…”