Title: Modelling market competition by Generalised Lotka Volterra system: a case in Sri Lankan mobile telecom market

Authors: A.W. Wijeratne, J.A. Karunaratne, Jian Fang, Junjie Wei

Addresses: Harbin Institute of Technology, Room 510, House A-06, No. 92 West Dazhi Street, Nangang District, Harbin 150001, PR China; Department of Agri-Business Management, Sabaragamuwa University, Belihuloya 70140, Sri Lanka. ' Economics and Management College, Harbin University of Science and Technology, No. 4 Linyuan Road, Dongli District, Harbin 50040, PR China. ' Department of Mathematics, Harbin Institute of Technology, No. 92 West Dazhi Street, Nangang District, Harbin 150001, PR China. ' Department of Mathematics, Harbin Institute of Technology, No. 92 West Dazhi Street, Nangang District, Harbin 150001, PR China

Abstract: The Generalised Lotka-Volterra (GLV) formulation has been used in this paper to model the competitive situations in market economics. The stability analysis was carried out to define monopoly, oligopoly and perfect competition. A stepwise numerical procedure was carried out using data from mobile telecom sector in Sri Lanka in order to illustrate the duopoly. According to the stability theory, the long-term coexistence equilibrium of the two competitors has been obtained. The study shows that the GLV model consists of components that are core issues in antitrust analysis. Therefore, it has been proposed that GLV should be used as a basis to develop more comprehensive tool for competition policy formation in its turn would increase the social wealth ensuring the long-term survivability of the competitors.

Keywords: coexistence equilibrium; Lotka-Volterra formulation; stability analysis; modelling; market competition; Sri Lanka; mobile telecommunications; mobile phones; cell phones; antitrust analysis.

DOI: 10.1504/IJICBM.2008.018623

International Journal of Indian Culture and Business Management, 2008 Vol.1 No.4, pp.421 - 433

Published online: 02 Jun 2008 *

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