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Retail competition today can be described by three main features: (i) oligopolistic competition, (ii) multi-store settings, and (iii) the presence of large economies of scale. In these markets, firms usually apply a centralized decisions making process in order to take full advantage of economies of scales, e.g. retail distribution centers. In this paper, we model and analyze the stability and chaos of retail competition considering all these issues. In particular, a dynamic multi-market Cournot–Nash equilibrium with global economies and diseconomies of scale model is developed. We confirm the non-intuitive hypothesis that retail multi-store competition is more unstable than traditional small business that cover the same demand. The main sources of stability are the scale parameter, the number of markets, and the number of firms. [ABSTRACT FROM AUTHOR]

Abstract: BRICS (Brazil, Russia, India, China and South Africa) are viewed currently as pillars of relative political, economic and financial stability, with the prospect of a major shift in future world power. The paper aims at investigating the relationships among the economic, financial and political country risk ratings of the BRICS and relating those risk factors to their respective national stock markets in the presence of representatives of the world's major stock markets and oil market. It also examines the interrelationships among the national country financial risk ratings factors to discern transmission of the risk spectrum among the countries of this group because of the relevance of this information to investors, traders and policy makers. The results demonstrate that only the Chinese stock market is sensitive to all the factors. Financial risk ratings generally demonstrate more sensitivity than economic and political risk ratings, and political risk is sensitive to both financial and economic risk ratings. Among the five BRICS, Brazil shows special sensitivity to economic and financial risks, while Russia and China hold strong sensitivity to political risk and India demonstrates special sensitivity to higher oil prices. Among the global factors, oil price is more sensitive to economic than financial risk, while the S&P 500 reverses this relationship. The two American quantitative easings (QEs) affect BRICS differently. [Copyright &y& Elsevier]

Abstract: Utilizing simulation approach, this paper examines if the income distribution inequality of a country expands through globalization and/or innovation, somewhat modifying the traditional Heckscher–Ohlin model. First, independently of innovation, the globalization is examined for a country A with two industries (commodities) and four consumers: the (aggregate) worker, the (aggregate) capitalist, and two entrepreneurs. It is shown that there is a clear tendency for the inequality to expand by globalization. Furthermore, when country A is small, the inequality-promoting tendency is stronger. Second, the innovation is examined independently of globalization, by the procedure in which the new-third industry (commodity) and the new-third entrepreneur are introduced, so that there are five consumers. When innovation emerges in country A in autarky, it is shown that the innovation has tendency to cause inequality expansion. Finally, the innovation and globalization are examined in an integrated manner. We start with the country in the second case. It is shown that when the new-third commodity is produced only in country A and is a non-traded commodity, inequality tends to expand through the globalization. It is shown, furthermore, that when the third commodity is produced in both countries and is a traded commodity, we have stronger tendency. Thus, there is a clear tendency for the inequality to expand through the globalization and/or innovation. [Copyright &y& Elsevier]

Abstract: In this paper, we consider a macroeconomic model with alternative linear and non-linear specifications. One version of the model, expressed in levels, is highly non-linear and has at least two steady-state equilibria. One of these equilibria has an economically meaningful interpretation, while the other does not have a sensible economic interpretation. A second version of the model, expressed in logarithms, is linear and has a unique steady-state equilibrium, which corresponds to the economically meaningful equilibrium of the non-linear version of the model. The dynamic solution of each model version has a combination of stable and unstable eigenvalues so that any dynamic solution requires the calculation of appropriate “jumps” in endogenous variables. Attempts to solve these models, using forward-shooting and reverse-shooting algorithms, show that the forward-shooting algorithm chooses the “wrong” solution for the non-linear model, but the “right” solution for the linear model. The reverse-shooting algorithm chooses the “right” solution in both cases. We demonstrate how this result is driven by particular properties of the two versions of the model. [Copyright &y& Elsevier]