Shahlar Gachay Askerov. Baku State University, Baku, Azerbaijan

Transcription

1 Econoics Worl, Nov.-Dec. 2018, Vol. 6, No. 6, oi: / / D DAVID PUBLISHING Econophysical Applications for Econoic Progress: Monopoly an Copetition Cases Shahlar Gachay Askerov Baku State University, Baku, Azerbaijan This stuy attepts to investigate the relationship between onopoly an copetition an the philosophy of progress, using the ethos, oels, an ters fro physics. The ter progress is a newly aopte ter an is efine as the value of an increase in the prouction rate per unit of tie. It is shown that to achieve progress, it is necessary to increase the prouction on a non-linear basis over tie. Therefore, it is enough to have any firs that interact with each other uner the influence of arket forces. It is iportant to have a high level of university eucation, a legal environent for copetition an inestructible antitrust laws. Even without strong science, you can ake progress by acquiring technology an creating conitions for copetition in the arket. A factor that strongly influences progress, of course, is technology. For the evelopent of technology, there is a great nee for science. Science is a very powerful factor that affects the non-linear change in the econoic evelopent. It is shown that uring the transition perio fro an absolute onopoly to an iperfect onopoly the syste becoes ore coplex, an its output characteristics becoe non-linear as a function of tie. It was foun that the relationship between onopoly an copetition is very siple, an there is no contraiction between the. Initially, the arket is born as a onopoly, an then with the creation of siilar firs, copetition, as the natural arket process, begins between the. Keywors: econophysics, progress, copetition, onopoly, uopoly, prouction rate, Schottky ioe, revers İ-V characteristic Schottky ioes Introuction In the oern worl, copetition is the riving force of the econoy an an iportant factor in the evelopent of the econoy. Therefore, the interaction between onopoly an copetition is wiely stuie. This proble is consiere in the light of the econophysics in this article. Econophysics is an interisciplinary an stanalone research fiel which has been set to for since the 1990s of the last century. The ter econophysics was coine by Eugene Stanley (Mantenga & Stanley, 2000). Nowaays, econophysics is eveloping rapily. To solve soe econoic probles, it is soeties useful to apply oels, ethos, an laws of the science of physics. One of the brightest exaples for the application of physics to solve econoic probles is the gravity oel of international trae. This oel in 1954 was first introuce in econoics worl by Walter Isar (1954). Shahlar Gachay Askerov, octor of Science, professor, Faculty of Physics, Baku State University, Baku, Azerbaijan. Corresponence concerning this article shoul be aresse to Shahlar Gachay Askerov, 23 Zahi Khalilov str, Baku State University, Baku AZ-1148, Azerbaijan.

2 ECONOPHYSICAL APPLICATIONS FOR ECONOMIC PROGRESS 451 In our opinion, soe of the results we obtain in ifferent fiels of physics can be applie in the arket econoy. Such phenoenas inclue low-energy cathoe sputtering (Askerov & Sena, 1969; Askerov, 1970) an the reverse branch of the current-voltage characteristic of the Schottky Dioes (Askerov, Gasanov, & Abullayeva, 2018). Research Methos Siilarity between the echaniss of low-energy sputtering an the arket econoy was show in the report The Stuy of the Market Econoy Proble by the Metho of Econophysics (Sh.G. Askerov & A.Sh. Askerov, 2017). To achieve progress in the area of the arket econoy, one can borrow scientific results obtaine in the fiel of cathoe sputtering at low ion energies. Both cathoe sputtering an the arket econoy have a clear relationship between the structure an the property. Thus, it is possible to alter the properties of the object by changing the structure an to convert its linear output characteristics to non-linear characteristic which is very ipotent in this case. Another physical phenoenon that is useful for the arket econoy is a reverse branch of the current-voltage (I-V) characteristic of the Schottky ioes (SD). Schottky ioe is calle the ioe which is fore between the seiconuctor an etal. In this case, seiconuctor ust efinitely have a onocrystalline structure. But the etal ay have polycrystalline structure. This type of ioe was researche an ipleente over the last hunre years. The reverse branches of the current-voltage characteristic is that this ioes vary for their shapes, which are presente in Figure 1. As it is shown in Figure 1, the shapes of the İ-V characteristic have har (a) an soft () breakowns, an soeties is observe I-V characteristic with breaks (see Figure 1, b an c). Figure 1. Reverse branches of the I-V characteristic of the etal-seiconuctor contact. Note. Ur an Ir show the reverse voltage an the current flowing through the ioes. Figure 1(a) shows that the SD has an ieal (har breakown) I-V characteristic an reverses current breaks only at one point. With an increase in the reverse voltage (Ur), the reverse current grows linearly. This eans the interface of investigate ioe is unifor an not only seiconuctor, but also etal has a onocrystalline structure. An the ioe consists only fro one sub-ioe. Figure 1(b) shows that the reverse I-V characteristic is broken at two points. This eans that the investigate ioe consists of a parallel cobination of two sub-ioes which have ifferent paraeters, such as: (i) the breakown voltage; (ii) ioe area; an (iii) barrier heights. After breakown of the first ioe, the reverse current rises accoring to the avalanche breakown echanis. When the voltage reaches to the breakown voltage of the secon ioe, the secon ioe breaks, an the reverse current breaks one ore tie. In the case, when the nuber of sub-ioes is three, the thir bening appears in the reverse current-voltage characteristic (see Figure 1, c). In the sae way, it is possible to

3 452 ECONOPHYSICAL APPLICATIONS FOR ECONOMIC PROGRESS explain the I-V characteristic of Schottky ioes when the nuber of sub-ioes are ore than 4. Obviously, if the nuber of sub-ioes is large, then the inverse I-V characteristic of the coon ioe will be non-linear (see Figure 1, ). Thus, in the opposite irection, the linearity or non-linearity of the current-voltage characteristic of a SD epens on the egree of hoogeneity of the interface. By changing the egree of inhoogeneity with the technology, it is possible to change the nuber of contact-foring sub-ioes. The nuber of sub-ioes can be varie by the shape of the I-V characteristic. At n = 1, the Schottky ioe has an ieal sharp, an at n > 4, a soft current-voltage characteristic. When n = 2 or 3, there are İ-V characteristics with 2 or 3 bens. As a result of geoetrical aition of linear reverse, currents I-V characteristics, the coon current-voltage characteristic becoes soft, i.e., non-linear. It can be conclue fro the aforeentione that, if the nubers of sub-ioes increases, the angular coefficient of the I-V characteristic increases continuously. As a result, the straight-forwar character of the sub-ioes is transfore to becoe non-linear. Accoring to the author, the above entione approach can be applie in the arket econoy as well. Results an Discussion Let us suppose that there is a linear relationship between the volue of prouction (İ) an the tie (t): İ = b t (1) Here, b is the proportionality coefficient, which shows the volue of prouction prouce per unit of tie. İt can also be calle the prouction rate. At b = 0, there is no prouction, i.e., cooity is not prouce. We can assue that in the case of a pure onopoly, b reains constant (b = b = const) an oes not change over tie. In this case, we have the prouction, but we on t have the progress. To achieve progress, it is necessary that the volue of proucts prouce per unit of tie (the spee of prouction) increases over tie. In other wors, to achieve progress the linear İ(t) epenence shoul becoe non-linear, or change non-linearly. It eans that the in the progress coefficient of proportionality, b (in forula 1) shoul graually increase. Accoring to the author, this is a necessary conition for progress. Figure 2 shows the epenence of the prouction volue of goos (or services) on tie uner ifferent arket structures. The prouction activity of the pure onopolist fir is represente by a straight line, while the activity of the secon siilar fir is shown in the straight line. As it is easy to see, the presence of the secon inepenent proucer of ientical goos ( ) in the arket creates copetition an the epenence İ(t) is transfore fro a straight line into a broken line 1-2. If another new inepenent proucer of goos (oo lines) appears on the arket, the copetition will increase even ore, the nuber of broken lines will increase to three (1-2-3). In the econoic theory, the case of 1-2 is calle uopoly an the case is calle oligopoly (Econophysics, 2007). The angular coefficient b will respectively increase as the nuber of firs increases. The parallelis of the lines, an oo in Figure 2 eans that the technologies use in the prouction of goos by copeting firs are at the sae level. In aition, as can be seen fro the graph, if the nuber of copetitors grows, the output volue per unit of tie will also increase: b > b > b. Thus, in the presence of copetition, the transition process fro an absolute onopoly to an iperfect onopoly (oligopoly) akes arket ore coplex, an its output characteristics iffer significantly fro the output characteristics of iniviual inepenent proucers on the arket.

4 ECONOPHYSICAL APPLICATIONS FOR ECONOMIC PROGRESS 453 The increase in the quantity of prouction per unit of tie b in case of uopoly can be represente by the following forula: Output 3 b volue b > b > b b д 1 b м 2 Tie Figure 2. Depenence of the prouction volue of goos (or service) on tie in case of pure onopoly (), uopoly () an oligopoly (oo) arket structures. b = b + αt (2) Here, b an b are prouction rates of a uopoly an pure onopolistic fir, respectively; α is a constant characterizing progress. Accoring to the forula (2), progress can be efine as a value equal to the change in b per unit tie, an its unit of easureent is the prouction volue (goos or services)/t 2. It is known fro the school physics that, the spee of the alternating otion at any tie is efine by the following forula: v t = v 0 + at (3) where v t is the velocity at tie t, an v 0 is the velocity at the tie of the reference, an a is the acceleration. Acceleration in physics shows a change in spee over tie an easure by the unit: istance/t 2. Acceleration in the econoy characterizes the progress an shows the change of prouction rate over tie an easure by the unit: prouction volue/t 2. If we take forula (2) into account in forula (1), we can get that İ is non-linearly tie-epenent. Even with perfect copetition (any firs) an an ientical technology, the aount of output per unit tie proportionally increases over the square of tie, which leas to the eergence of progress: İ = b м t + α t 2 (4) In such conitions, there is no nee for the evelopent of science. İt is sufficient to have a high level of university eucation, an a legal environent for copetition. Soe countries which belong to so-calle eerging econoies often choose this way of evelopent. Another factor that strongly influences the progress is, of course, technology. It is well known that technology epens on the level of science. The nee for technological evelopent leas to a greater nee for science. For this reason, in evelope countries the society allocates big financial resources for science.

5 454 ECONOPHYSICAL APPLICATIONS FOR ECONOMIC PROGRESS The intellectual way to the progress goes through these stages: science technolog progress. The relationship between the change in the level of technology (ΔT) an science (S) in a certain tie interval ΔT can be represente in the following for: ΔТ = к 1 S Δt (5) where k 1 is the coefficient of proportionality. Figure 3 shows the tie epenence of the growth of prouction of goos by copeting firs using ifferent technologies. The graph shows the case where each newly create copany uses ore avance technology ( b > b д > b м ) for econoic growth. b > b д > b м 3 Output volue b 2 b д 1 b м Tie Figure 3. Tie epenence of output characteristics of prouction with application of various technologies: -ol technology, -stanar technology, oo-high technology. As it is seen fro Figure 3, technology is a powerful factor to increase prouctivity over unit a tie. For this reason, evelope countries are pioneers in eucation, science, an technology. Thus, we can conclue that with the increase of the nuber of copeting firs, the types of arket structures change, an their sequence fro pure onopoly to perfect copetition can be represente by the following chain: Pure onopoly Duopoly Oligopoly İperfect copetition Perfect copetition Figure 4. Dynaics of transition fro pure onopoly to pure copetition.

6 ECONOPHYSICAL APPLICATIONS FOR ECONOMIC PROGRESS 455 As can be seen, the relationship between onopoly an copetition is very siple an there is no contraiction between the. Initially, the arket is born as a onopoly, an then analogical firs were create, copetition between firs starts. Fro the foregoing, it can be conclue that in orer to achieve progress over tie, the prouction of non-linear proucts is iportant. To o this, it is sufficient to have a nuber of firs interacting with each other uner the influence of copetition. It is note that if the nuber of firs grows, the arket is subject to the law of coplex systes. By acquiring technology an creating conitions for copetition in the arket, one can achieve progress even without having a strong science. In other wors, free copetition an strong antitrust laws are very iportant for the econoic growth of countries. Technology is a factor that strongly influences the progress. There is a great nee for science in orer to evelop the technology. Science is a very strong factor that influences the non-linearly changing growth of the econoy. Scientists are subjects that evelop the science. Scientists are generators of ieas; they stan at the center of worl evelopent. Again, as the value of the reverse voltage applie to the Shottky ioe increases, the nuber of sub-ioes involve in the breakown process increases. As a result, the I-V characteristics of ioes with ifferent shapes are expresse in ifferent linear an non-linear laws. There is also a siilar event in the arket econoy. If the nuber of firs proucing the sae prouct grows, the structure of the arket varies, copetition takes place, an the quantity of proucts prouce at the unit tie increases. It is shown that with the growth of the nuber of copeting firs, the types of arket structures change, an their sequence fro pure onopoly to perfect copetition can be represente by the following chain: pure onopoly-uopoly-oligopoly-pure copetition an again a onopoly arising fro technological avanceent. Conclusions To suarize, as there is no conflict between onopoly an copetition, or there is no agic han, there is a natural arket interaction. Like an electric charge which creates aroun itself an electric fiel, each copany creates its own arket fiel an interacts with each other through this fiel. The following results were obtaine fro this stuy: (1) In orer to achieve progress, it is necessary to bring together several firs that prouce the sae prouct (service). This akes for a coplex syste an creates a significantly copetitive environent. Unlike the straight line characteristics of onopoly firs, the output characteristic of the coplex syste is non-linearity. The non-linearity of output characteristics is iportant for progress. Another iportant prerequisite for progress is the protection of entrepreneurs fro onopoly, i.e., an the nee for tough anti-onopoly laws. (2) As a result of the research, the ter progress has a new eaning, inicating an increase in prouction rate over a unit tie, an easure by the prouction volue/square of the unit tie. (3) Technology is a key to rapi econoic evelopent. It is possible, to acquire technology, to create a copetitive environent, an to achieve progress. There is no nee for serious science here. (4) A high technology is essential for speey evelopent. Technology evelops by science, but the science iproves by scientists. Hence, scientists are at the center of evelopent. This fact is well-unerstoo by evelope countries. Of course, this result is not new, since the values of scientists have been unerstoo by the society since any centuries.

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