Industrial Organization

G

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In the equation
dx/dt = αx (1 − x) − βx,

The example we gave was the spreading of rumors in a class of fixed size. Introduce population growth at the rate γ. In the context of the classroom example, this means that new uninformed people keep entering the room in such a way that the class size grows at the rate γ, constantly over time.

1. How does equation (1) change?

2. Calculate the new level of x∗ (i.e., the long-run fraction of people that are
informed) that xt approaches from any initial positive x0.

Anyone have any ideas???
Thanks
 
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