MATHEMATICS. MATHEMATIC MODELING

Producer’s damage as a function of deviations of market-price and market-supply from its equilibrium values (Cobweb model as example)

A. V. Gotovtsev

Water Problems Institute of the Russian Academy of Sciences

Abstract: Definition of new economic parameter "average dynamic damage" is offered, which is under-stood as a difference between potential profit of a commodity producer at an equilibrium condition of the market and "nonequilibrium" (i.e. real) profit. Formulas for the approached estimation of a range of change of this parameter are proved at a nonequilibrium condition of the market. Geometrical interpretation of "damage of a commodity producer " is offered.

Keywords: economical parameter, model of dynamic market-price, Cobweb model, equilibrium, dynamical damage, geometrical interpretation.

UDC: 519.86

Received: 16.09.2009

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