Practical Pricing Application
Posted: Wed Apr 10, 1996 12:17 pm
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
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