Prediction on the competitive outcome of an enterprise under the adjustment mechanism

摘要

This paper mainly explores adjustment mechanisms influence on the competitive outcome of an enterprise. Based on the estimation of marginal profit, we construct a competitive model of two enterprises with adjustment mechanism, in order to describe the evolution of production. Furthermore, we discuss the competitive outcome under two different circumstances. When these two companies co-exist in a same industry market, the adjustment mechanism is conductive to reducing the gap between them both in output and profit. As a result, that difference can be eliminated in a specific condition, which means that two firms reach the state of Nash equilibrium. However, when one enterprise is dislodged from the market and the other takes full control, the bankrupt one can either pile into the market or lose it all the same in terms of the adjustment mechanism. Numerical simulations are also presented to verify our results.