Practical Pricing Application

[Drs RWA van der Wyck]

Hello,

I was wondering if any one in the System Dynamics community has had any =
experience in developing a pricing strategy model. What I am interested =
in is to make a generic model which includes elements such as market =
size, strategy, price, and variable and fixed costs. These are connected =
to eachother causally through feedback loops. I have been working on a =
model which simulates the behavior of a competitive equilibrium whereby =
a price change brings a shock to the system and over time it settles to =
a new level of equilibrium.
I want to be able to simulate the effects price changes have on the =
competitors strategy and price. And how these effect overall market size =
and individual market shares.
If anyone has experience in the modeling of these type of issues I would =
appreciate some feedback.

Regards,
Rhoderick van der Wyck
rvdwyck@paradigm.nl

[Jim Hines]

I have experience in modeling pricing strategies. If you havent
already, you might look at the Molecules for pricing and market share.

There will be a new version of the molecules up in a few days with about
80 pages of documentation, so its probably best to wait if you havent
down-loaded them yet.

Regards,
Jim Hines

["Jana R. Saito"]

On Tue, 10 Sep 1996, Drs RWA van der Wyck wrote:
> I was wondering if any one in the System Dynamics community
has had any experience in developing a pricing strategy model...


Hi Rhoderick!

I am working in a MACROECONOMIC MODEL .. maybe you will be interest..

The model is composed by several variables, including: Govern.
Spent($), inflation tax (%), employment level, price level, Money Offer,
and others..

I am working in that to simulate.. and then to compose with a
education game.. . .we will still include an oligopoly industries..

If you are interested.. send me an E-mail. and then i will
explain better..

see ya!
Jana.

Jana R. Saito
g128996@iris.ufscar.br

[Drs RWA van der Wyck]

Hello Jana,

Thaks for the reaction to my mail. I am intersted to hear more about
your project/model. I must admit that I am rather focused on the micro
economic aspect of this problem (price strategies, profit maximisation,
market share).
Anything in this area would be of great use.

Regards,
Rhoderick
twofold@wirehub.nl