Quantitative dynamics for the pedlar model

This work deals with a dynamical model able to represent the equilibrium of a monopolistic market characterized by the presence of a counterfeiter. The formalization of the behaviours of the economic agents (the monopolist, the counterfeiter and the consumers) leads to a first order linear difference equation system, whose solution describes the dynamical equilibrium of the counterfeit market.

In this work we present a dynamical model capable of representing the equilibrium of a counterfeit monopolistic market. The formalisation of the economic agents' behaviours leads to a linear finite difference equation, whose solution describes the dynamical equilibrium of the market.