This simulation studies the strategic interaction between a monopolist and a counterfeiter from a dynamical perspective. Initially, some closed form solutions are obtained for the model proposed.
It has to be noticed that this model becomes not only computable, but also tractable thanks to the appropriate choice of the demand function. Still, the inherent complexity due to nonlinearities and the presence of stochastic disturbances requires a simulation investigation of the possible outcomes.
The authors (for the first time) implement in Swarm a graphical representation of a state-space dynamics.

Press here to dowload the source of the simulation