Co-Evolutive Models for Firms Dynamics

This paper considers the Bak-Sneppen (B&S) Self-Organized Criticality model originally developed for species co-evolution. We focus both on the original application of the model on a lattice, and on scale-free networks. Stylized facts on firms size distribution are also considered for the application of the model to the analysis of firms size dynamics. Thus, the B&S dynamics under the uniform, Normal, lognormal, Pareto, and Weibull distributions is studied. The original model is also extended by introducing weights on links connecting species, and examining the topology of the resulting Minimum Spanning Tree (MST) of the underlying network. In a system of firms a MST may evidence the template of the strongest interactions among firms. Conditions that lead to particular configurations of a MST are investigated.

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