Two Sets of Boundary Conditions in Cyclical Systems with Goodwill in Capitalization

Abstract

Mathematical analysis is conducted on cyclical systems with goodwill in capitalization. Proportional goodwill vanishes with vanishing tangible value. Correspondingly, periodic boundary condition does not enable commercial utilization of the goodwill. Abandoning the periodic boundary condition enables commercial utilization of the goodwill. Even if a physical system is periodic, an agent can abandon the corresponding boundary condition by divesting. Example cases are shown in terms of boreal forestry systems.

Keywords

• periodic boundary conditions
• capital return rate
• expected value
• divesting