Simple Models of Enterprise Performance: Cooperative vs Monopolistic Strategy

Abstract

We introduce two simple models of enterprise performance. One model consists of the recurrence formula for the probability which is interpreted as the market share of enterprise. The other consists of a system of ordinary differential equations (ODEs), where the degree of performance is described. We show that the cooperative strategy may outperform the monopolistic behavior, which incorporates the phenomenon observed in case study of forestry and timber industry in Maniwa, Okayama prefecture, Japan.