Impact of Preference Distribution and Profits on The Differentiation of Brand Competition

Based on the economics theory of market, it is proposed that the brand competition is imperfect, the differentiation of which is the result of competition and one of the determinant factors of the firm's profit. The theory of random variable distribution is applied to quantitively analyze the relationship between the probability distribution of consumers' preference and their utility and demand for brands. The conclusion is that the differentiation of consumers' preference influences the market demand for brands through prices, thus the brands should be differenced if the firms want maximum market share. Also the relationship between firms' profits and the degree of brand competition differentiation is studied with the Shaked and Sutton model, and the result is the same if the firms want the more profits.     

The Recession and the New Economy of the West: The Familiar Boom and Bust Cycle?

The U.S. West has gone through many periods of economic boom and bust, most of which were associated with rapid rises and declines in commodity markets. The recent structural shift toward a primarily service‐based economy begs the question of whether the driving forces behind the cycles of boom and bust also may be shifting away from commodities toward people and their resources. This paper explores several factors that contributed to growth in the 1990s and 2000s: asking whether these factors created any advantages or disadvantages during the most recent recession and whether the shift away from commodity production to a knowledge‐ and human capital‐intensive economy has implications for how local areas experience the boom–bust cycle.