Price Determination via Supply Gap
Posted: Tue Apr 11, 2017 11:53 am
Hi,
my model should generate following behavior:
If there is a supply gap > 0 (it means demand > production) then the price should increase by a fixed value for the next two years (also if the supply gap will be negative in the following years; this should be not considered in the price change rate)
For Example:
At time 2: Supply Gap > 0 -> decision to increase price
At time 3: Supply Gap < 0 -> decision to decrease price
At time 4: Supply Gap <0 -> decision to decrease price
-> What I want: Price should increase between time 2 and time 4
Can you please help me with my problem?
Thanks in advance,
Sandra
my model should generate following behavior:
If there is a supply gap > 0 (it means demand > production) then the price should increase by a fixed value for the next two years (also if the supply gap will be negative in the following years; this should be not considered in the price change rate)
For Example:
At time 2: Supply Gap > 0 -> decision to increase price
At time 3: Supply Gap < 0 -> decision to decrease price
At time 4: Supply Gap <0 -> decision to decrease price
-> What I want: Price should increase between time 2 and time 4
Can you please help me with my problem?
Thanks in advance,
Sandra