TITLE:
Business Ecosystems and Differential Equations: Computer Simulations of Competition and Competitiveness Scenarios
AUTHORS:
Júlia A. Kudo, Raphael de O. Garcia, Graciele P. Silveira
KEYWORDS:
Differential Equations, Numerical Methods, Competition of Companies
JOURNAL NAME:
Open Journal of Business and Management,
Vol.13 No.1,
January
31,
2025
ABSTRACT: Understanding the interactions that occur within a business niche and their future predictions can play an important role in decision-making in situations of competition, competition and/or cooperation. The similarities of interactions between species and the corporate world make it possible to use systems of ordinary differential equations, containing two companies and their interconnections. The purposes of this work were to mathematically model business ecosystems via systems of differential equations, using own codes written in computer language R; to investigate scenarios of competition and concurrence between companies under the effect of noise that simulates market variations, the impacts of advertising actions, spurious interference via random variables and the effects of external adversities. For this, the Euler’s and Euler-Maruyama numerical methods were used in the discretizations of the equations. Finally, several scenarios were developed, altering, jointly and/or separately, each factor of the equations, indicating what they represent and the impact they have on the companies involved, associating them with different types of noise and defining a time course for the companies’ performance.