<p>When businesses make decisions to increase profits, they have to adjust several &quot;parameters&quot; of the business such as quantity to output, pricing, choosing a production mix, brand positioning, strategy, and so on.</p>
<p>Can these be approximated to a movement in state space, where a point in state space represented by a certain choice amongst all the possible options? I would also like to know if any prominent economic theorists have viewed things this way.</p>

CC BY-SA 4.0
2023-07-16T13:06:02.247Z
Are you acquainted with control theory?
Rodrigo de Azevedo
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2023-07-17T13:17:23.310Z
@RodrigodeAzevedo: I'm aware of it, but only in a casual way. Would you care to elaborate?
Joebevo
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2023-07-17T13:26:34.087Z
Almost anything is a movement in state space.  Can profit-maximisation be seen as hill-climbing? Almost surely. It would be easier If you identified the inputs, outputs and states. Oversimplification is wise
Rodrigo de Azevedo
<optimization><markets><decision-theory>
Can a business's search for profits be considered as movement in state space?
Joebevo
# Can a business's search for profits be considered as movement in state space?

(Asked by: username_0 on 2023-07-16)

When businesses make decisions to increase profits, they have to adjust several "parameters" of the business such as quantity to output, pricing, choosing a production mix, brand positioning, strategy, and so on.

Can these be approximated to a movement in state space, where a point in state space represented by a certain choice amongst all the possible options? I would also like to know if any prominent economic theorists have viewed things this way.

**Tags:** optimization, markets, decision-theory

> **Comments:**
> **username_1**: Are you acquainted with control theory?  
> **username_0**: @username_1: I'm aware of it, but only in a casual way. Would you care to elaborate?  
> **username_1**: Almost anything is a movement in state space.  Can profit-maximisation be seen as hill-climbing? Almost surely. It would be easier If you identified the inputs, outputs and states. Oversimplification is wise  

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