Tuesday, February 3, 2015

Oscillation Patterns of Businesses within a Market

The degree by which the size of a population is sensitive to density varies from one population to another. Some populations are more sensitive to density than others. A population that is completely independent from density would keep growing in number till infinity, which is not something we observe in nature. The pattern by which a population grows or decreases in number depends on the effective rate of birth and its dependence on density. A population may oscillate till it reaches a stable size.

In the business world, similar patterns may also emerge. The number of businesses working in a specific market may increase or decrease in an oscillating pattern depending on the degree to which the size of this 'population' is dependent on its density in the market.