Ventana software support forum

Posted by <richard.dudley@attglobal.net>

I am interested in learning more about price setting embedded in
models. I sometimes see price setting determined by a price-demand curve and a
price - supply curve but these seem to be a bit artificial. In the real world
buyers base their willingness to purchase on recent prices and knowledge of
related prices and price trends plus another of other things. In other words,
what are the factors that are constantly reshaping these curves. I am just
wondering where I might find some good sources / papers related to this
issue....
particularly as it might relate to model conceptualization. Are there some
standard approaches, or is this modeled on an ad hoc basis?

thanks, Richard
Posted by <richard.dudley@attglobal.net>
posting date Wed, 3 Sep 2008 15:59:17 -0700
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Posted by John Sterman <jsterman@MIT.EDU>

Business Dynamics includes several models of pricing and price discovery. See
ch.
13.2.12 and ch. 20, esp. 20.2.6.

John Sterman

Jay W. Forrester Professor of Management
Director, MIT System Dynamics Group
MIT Sloan School of Management
Posted by John Sterman <jsterman@MIT.EDU>
posting date Thu, 4 Sep 2008 07:03:31 -0400
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Posted by ""John Voyer"" <voyer@usm.maine.edu>

Richard,

I believe the Vensim ""Molecules"" include several (at least three) that relate to
pricing in much the way that you suggest.

Perhaps Jim Hines, who wrote his SD dissertation on this topic and I think was
behind the molecules, might weigh in as well.

John Voyer

----------------------------------------------------------

John J. Voyer, Ph.D.
Associate Dean for Academic Affairs and Accreditation
and Professor of Business Administration
School of Business
University of Southern Maine
Posted by ""John Voyer"" <voyer@usm.maine.edu>
posting date Thu, 04 Sep 2008 09:05:10 -0400
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