Alfredo Moscardini

Using system dynamics to analyse interactions in duopoly competition

This article introduces non-linear dynamics to assess the interactions in duopoly competition between two rivals. The generic competition is considered here to be the competition for quality between two consumer durable products. The authors have used a system dynamics approach to develop the model of interactions and simulate the behaviour over time. The outcomes of several hundred simulations have shown that the recognition and implementation lags in quality improvement strongly influence the qualitative behaviour of the system. When the speed of adaptation to customer demand reaches a certain value, a Hopf bifurcation occurs and the system converges into a limit cycle. Quasi-periodicity and chaos emerge when further increasing the speed of the response. Instead of tending to equilibrium around an optimal quality value the model exhibits complex counter-intuitive behaviours.

Governance of economic transitions: a case study of Ukraine

Purpose – Ukraine has had to change in ten years from a strong centrally controlled communist economy to a market economy. It has not been successful. The purpose of this paper is to explain this failure from the complexity management point of view.Design/methodology/approach – This paper takes a cybernetic view of the attempts at Governance in Ukraine over its transition period. To diagnose the problem a novel approach based on the Viable Systems Methodology of Stafford Beer is used.Findings – Serious structural flaws are identified in the organisation of governance at the national level and it is shown how these inadequacies induced the formation of mutant abnormal strategies at the level of economic agents.Practical implications – Presents credible explanations of phenomena such as barter, corruption, growth of overdue debts and the existence of incentives (other than profit maximizing ones) which drive the behaviour of firms.Originality/value – There are many explanations of the same phenomena in cont...

An adaptive search heuristic for the capacitated fixed charge location problem

The Capacitated Fixed Charge Location Problem (CFCLP) consists of selecting a set of facilities that must completely supply a set of customers at a minimum cost. The CFCLP is NP-hard thus solution methods are often obtained by using sophisticated techniques. However, if a set of facilities is known a priori then the CFCLP reduces to a transportation problem (TP). Although this can be used to derive solutions by randomly selecting sufficient facilities to be fixed open and noting any cost improvements, it is perceived as a poor technique that does not guarantee solutions near the optimal. This paper presents an adaptive sampling algorithm using Ant Colony Optimization (ACO). We hypothesize that random selection of facilities using ACO will generate at least near-optimal solutions for the CFCLP. Computational results for a series of standard benchmark problems are presented which appear to confirm this hypothesis.

Economics of advertising: Emerging functions of Internet advertising

This paper intends to highlight the emerging force of the Internet as an advertising medium. The economic functions of Internet advertising are examined. Moreover, the paper aims to evaluate the relative impacts on optimal advertising models. Our discussion also includes analysis of associated price-cost margins with respect to optimal advertising budgets and strategic reactions. All in all, this paper should provide entrepreneurs with more crucial knowledge of advertising strategies offered by the new medium. Moreover, it will equip scientists and technologists with more insights into the economic aspects and strategic values of Internet advertising.

Ant Based Heuristics for the Capacitated Fixed Charge Location Problem

This paper presents two different

A cybernetic diagnosis of Sri Lanka's 2002‐2003 peace negotiations

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Simulation: Art or science? How to teach it?

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Sri Lanka: an exploration of the systemic erosion of stability

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Auctions and retail price competition: a logit study of the North East

AS) based algorithms for the Capacitated Fixed Charge Location Problem (CFCLP) which is a discrete facility location problem that consists of selecting a subset of facilities that must completely supply a set of customers at a minimum cost. The first algorithm is concerned with extending and improving existing work primarily by introducing a previously unconsidered local search scheme based on pheromone intensity. Whilst, the second method makes a transformation of the derived

The Learning Cycle-Action Learning

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