Mathematical modeling of an industrial firm in transient economy

Abstract

A behavior model of an industrial firm with a possibility of merchandising and purchasing of production on two channels, traditional and commercial, is given. The former is stable, but less profitable due to non-payments. The latter is profitable, but risky. The model describes different modes of firm operation depending on economic parameters. In such a model, firms have incentives to integrate in financial and industrial groups.

Keywords

• Maximization; Organization; Russian economy.