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Modelling production dynamics, stock and prices of companies on a wide timespan. The role of competition and uncertainty

Toulouse School of Economics-Research - TOULOUSE - 2014

We aim to create a dynamic model for the economy of the industrial sector, in which companies set prices and quantities, and in which they must manage their stock (when met with stochastic demand). It is thus imperative to observer prices, production and stocks over an extended period, and for a larger number of companies. We will study the role played by uncertainty and the degree of competition in the industrial sector, as well as the importance of demand shocks in the long term development of companies involved in the sector.