Sunday, February 1, 2015

Mathematical Models of Business Competition

In the science of ecology, it is possible to establish mathematical models to approximate the effect of competition on a population or community of living organisms. Although no mathematical model of competition would be perfect, yet such models can help us understand, and to some extent predict, the behavior of populations and communities of living organisms.

Likewise, in the business world, it is possible to formulate mathematical models to simulate competition within a market or a whole economy. Despite such models never being perfect, yet that can help us get insights about the dynamics of the market or whole economy.