I can think of a few different types of market participants
Scientific Endevours: These are made up of people who are
Perfectly competitive coorporations.
Substitutable coorporations.
Complementary Competers: Militaries gain value by matching and exceeding competitors' capabilities
Firms may have some mixture of these attributes. E.G. OneWeb.
I can think of a few different types of market participants
- Scientific Endevours: These are made up of people who are
- Perfectly competitive coorporations.
- Substitutable coorporations.
- Complementary Competers: Militaries gain value by matching and exceeding competitors' capabilities
Firms may have some mixture of these attributes. E.G. OneWeb.
I think incorporating a cournot capacity argument is the way to go. I.e. the total capacity affects how much people are willing to pay. In a way, this is satellite internet firms selling bandwidth. They choose how much bandwidth to develop and then it is sold on the market.
So if I have only two firms to start with and an inverse demand function for prices, then I can solve for overall earnings.
The story is bandwidth, the investment is in # of satellites, and the costs are in launching and operating them.
I think incorporating a cournot capacity argument is the way to go. I.e. the total capacity affects how much people are willing to pay. In a way, this is satellite internet firms selling bandwidth. They choose how much bandwidth to develop and then it is sold on the market.
https://en.wikipedia.org/wiki/Cournot_competition#Finding_the_Cournot_duopoly_equilibrium
So if I have only two firms to start with and an inverse demand function for prices, then I can solve for overall earnings.
The story is bandwidth, the investment is in # of satellites, and the costs are in launching and operating them.
For militaries, there is a good example in RL&SO of a
\text{cost} = c\left(\frac{\bar R}{R_t}\right)^k
So cost is high if you diverge too far from the standard \bar R.
I think that could be the basis of a military's utility function.
For militaries, there is a good example in RL&SO of a
$$
\text{cost} = c\left(\frac{\bar R}{R_t}\right)^k
$$
So cost is high if you diverge too far from the standard $\bar R$.
I think that could be the basis of a military's utility function.
I can think of a few different types of market participants
Firms may have some mixture of these attributes. E.G. OneWeb.
I think incorporating a cournot capacity argument is the way to go. I.e. the total capacity affects how much people are willing to pay. In a way, this is satellite internet firms selling bandwidth. They choose how much bandwidth to develop and then it is sold on the market.
https://en.wikipedia.org/wiki/Cournot_competition#Finding_the_Cournot_duopoly_equilibrium
So if I have only two firms to start with and an inverse demand function for prices, then I can solve for overall earnings.
The story is bandwidth, the investment is in # of satellites, and the costs are in launching and operating them.
For militaries, there is a good example in RL&SO of a
So cost is high if you diverge too far from the standard
\bar R.I think that could be the basis of a military's utility function.