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Competition in Global Pulp Market - Marketplace & Competition

Competition in Global Pulp Market

A generic agent based model of competition in a commodity market. The product (pulp) is made from a raw material (wood), which has different prices in different regions. The competing companies are global and can have factories (mills) in any part of the world. The price on pulp at any time is the same worldwide and depends on demand, total production volume, and cost of pulp production (different at different mills). Each company (an agent) periodically assesses the situation and makes decisions, for example: temporary suspend or resume a mill operation, close a mill permanently, reconstruction a mill, or build a new one. Each company has financial resources formed from profit and losses that can be spent on reconstruction or building a new mill.

The model was created with AnyLogic - simulation software / Global Pulp Market

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