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Control theory and the dynamics of the firm

A survey

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Summary

This paper gives an overview to the state-of-art of applying control theory to the analysis of the dynamics of the firm. Three types of models are considered: one firm facing a certain environment, one firm facing a stochastic environment and with a risk of bankruptcy, and models of duopolies. In spite of the limits of these control theory models, they are useful to improve the understanding of important microeconomic phenomena and to explain to students or to junior managers how to combine policies through time to define an efficient strategy. An extended bibliography is given.

Zusammenfassung

Dieses Manuskript gibt einen Über-blick über den Stand der Forschung zur Anwendung der Kontrolltheorie bei der Analyse der Unternehmens-dynamik. Drei Modellarten werden betrachtet: ein Unternehmen in einer gewissen Umwelt, ein Unternehmen in einer stochastischen Umwelt mit der Möglichkeit des Bankrotts und Modelle, bei denen das Unternehmen in Konkurrenz zu einem anderen steht. Trotz der Grenzen dieser kontrolltheoretischen Modelle sind sie nützlich bei der Verbesserung des Verständnisses von bedeutenden mikroökonomischen Phänomena und wenn man Studenten oder Jungmanagern erklären will, wie man Politiken im Verlauf der Zeit kombiniert um eine wirksame Strategie zu entwickeln.

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  1. Laboratoire d'Econométrie, Conservatoire National des Arts er Métiers, F-75141, Paris

    J. Lesourne & R. Leban

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Lesourne, J., Leban, R. Control theory and the dynamics of the firm. OR Spektrum 4, 1–14 (1982). https://doi.org/10.1007/BF01837019

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