Big Data

Competitive Market For Multiple Firms And Economic Crisis

Date Added: Oct 2010
Format: PDF

The origin of economic crises is a key problem for economics. The authors present a model of long-run competitive markets to show that the multiplicity of behaviors in an economic system, over a long time scale, emerge as statistical regularities (perfectly competitive markets obey Bose-Einstein statistics and purely monopolistic-competitive markets obey Boltzmann statistics) and that how interaction among firms influences the evolutionary of competitive markets. It has been widely accepted that perfect competition is most efficient.