Describes the behaviour of the system. The model is a continuous function but aproximated for a number of steps in time. In this model the carrying capacity of a species is formulated more explicitly. The model simulates the interactions between predators and preys. The term xy in both equations is proportional to the number of likely encounters of the two population in a certain environment.
Encounters are detrimental to the rabbits and beneficial to the foxes.
The previous models are based on biology, but can be interpreted as economic variables, like the competition between different firms. The following models are more focused on the discussion of lock-in and diffusion processes. It describes the adoption of a new product by distinguishing two groups, the innovators and the imitators. Spatial Lock-in Assume you have two new places where new firms can enter. Which location will a firm choose.