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Modeling goal seeking behaviour when desired goal is changing

Posted: Fri Mar 03, 2017 7:34 am
by swati
Hi
I have a model in which I have a variable called Actual Price.Following Sterman's price discovery by hill climbing structure ( described in CH13), I am modelling actual price in goal-seeking manner.Actual price adjusts to indicated price.Indicated price, in turn, increases or decreases depending upon relative demand and supply pressures.Therefore, change in price can be negative or positive.Although I have thoroughly followed Sterman's book but i still want to confirm whether I am modelling price formation process coreectly or not.I am attaching a copy of the structure.Please see it once.

Regards
Swati

Re: Modeling goal seeking behaviour when desired goal is changing

Posted: Wed Mar 08, 2017 3:02 pm
by swati
Please suggest something.

Re: Modeling goal seeking behaviour when desired goal is changing

Posted: Thu Mar 09, 2017 1:37 pm
by LAUJJL
Hi

Do not expect anybody to build your models. The best is to be confident on your own capacity.

I have sent back a slightly modified model, with graphs for the variables, put limits to the constants and added a zidz function to allow the supply to equal 0. From that all you have to do, is to analyze your model by modifying with the synthesim the constants one after the others and trying to verify if the results on the graphs make sense. Once you have done that you can try to modify two constants at the same time etc.

This takes a lot of time and must be done with extreme care. When you have done that you may not need any help any more, at least for this problem.

Regards.

JJ

Re: Modeling goal seeking behaviour when desired goal is changing

Posted: Thu Mar 09, 2017 5:04 pm
by swati
Hi JJ
Thanks a lot.I will keep this mind before posting in future.thanks

Regards
Swati