Figure 1: Basic structure of the model
fect foresight nor complete information about future prospects, their decision will be
Taking a closer look at the firms’ heterogeneity we selected some firms with a
stereotypical development. In figure 4 we see what intuitively seems to be obvious,
the earlier a firm enters the better it is able to increase its market share. All the same,
there is no guarantee for first-movers to survive. The first-mover in the diagram dom-
inates the market until it is outperformed by the two successive firms and eventually
has to exit the market because of insolvency caused by an imbalanced set of endow-
ments within the firm. Best practice is shown by firm 5 which is a relatively late en-
trant but dominates the market until the end of the simulation run. The performance,
which is the growth rate, the
Figure 6: Number of new firms per period
Since we have only introduced the sector’s growth rate in turnover and the num-
ber of exits as two of many other measurable economic indicators influencing the ac-
tors perception of the real economic situation, the founding threshold keeps on rising
