paper

Critical phenomena in the market of competing firms induced by state interventionism

arXiv:2105.06206 · doi:10.1016/j.physa.2021.126102

Abstract

We achieve two primary goals in this work. First, we propose a flexible algorithm that can simulate various scenarios of state/government intervention. Secondly, we analyze the scenario exhibiting the critical behavior of the market of competing firms, which depends on the degree of government intervention and the activity level of the firms. Thus, we have analyzed the second-order phase transition series, finding the levels of critical intervention and the critical exponent values. As a result, we have observed a sharp increase of fluctuations at a critical intervention level and the local breakdown of the average market technology concerning the frontier technology.

arXiv comment10 pages, submitted to Physica A: Statistical Mechanics and its Applications

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