Dynamic model of firms competitive interaction on the market with taxation

TL;DR

This paper develops dynamic models of firm interactions in markets with taxation, including differential equation and Lotka-Volterra models, and proposes algorithms for analyzing competition and balancing interests.

Contribution

It introduces new mathematical models and algorithms for analyzing competitive interactions among firms under taxation, including a novel differential equation approach.

Findings

Models of competing and non-competing firms are formulated.

An algorithm for solving firm interactions under taxation is proposed.

A method for calculating the compromise point between state and enterprise interests is presented.

Abstract

In this article three models of firms interaction on the market are described. One of these models is described by using a differential equation and by Lotka-Volterra model, where the equation has a different form. Also, there are models of non-competing and competing firms. The article presents an algorithm for solving the interaction of competing firms in taxation and the calculation of a compromise point. Besides, the article presents a compromise between the interests of a state and an enterprise.