A NEW MODEL FOR PRICE FLUCTUATION IN A SINGLE COMMODITY MARKET USING MATHEMATICAL THEORY

Purpose - The private sector underlies any country's economy. A good functioning of the private system brings benefits both to the national economy and to the companies itself. Methodology/approach - Mathematical models are at the foundation of many of the economical theories. Price fluctuation and their evolution in a single commodity market is studied by applying mathematical models. Findings - This paper main results relate to the study of concrete models, behavior, existence and uniqueness of the solutions of those mathematical models that simulate the price fluctuations. Research limitations/implications - External factors that influence the price and the fluctuation changes that occur after, have been studied during time by different experts. The research problem proposed is the study of the price fluctuation in a single commodity market. Practical implications - In this dynamic global market it is important to be competitive and to adapt to the increasing demands of the market. The price fluctuation study and understanding based on economical-mathematical models stand as a useful management instrument to predict market evolution and how private business is profitable during crisis and in periods of economical growth. Originality/value - We use the theory of Picard operators for a functional Volterra-Hammerstein integral equation in two independent variables. The main contribution is a new mathematical model for price fluctuation in a single commodity market.