Sizing Strategies in Scarce Environments

Abstract

Competition is fierce and often the first to act has an advantage, especially in environments where there are excess resources. However, expanding quickly to absorb excess resources creates requirements that might be unmet in future conditions of scarcity. Different patterns of scarcity call for different strategies. We define a model of interacting specialists (entities) to analyze which sizing strategies are most successful in environments subjected to frequent periods of scarcity. We require entities to compete for a common resource whose scarcity changes periodically, then study the viability of entities following three different strategies through scarcity episodes of varying duration and intensity. The three sizing strategies are: aggressive, moderate, and conservative. Aggressive strategies are most effective when the episodes of scarcity are shorter and moderate; conversely, conservative strategies are most effective in cases of longer or more severe scarcity.