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simulation models on RunTheModel.com

Market_behavior

This model is a simplified representation of a dynamic market.  

The user sets the amount of companies that will compete in the market. Each company will produce at a certain quality and
sell at a certain price. Quality determines variable costs, while price impacts revenue. The companies are looking to turn a
profit and attain a target market share; in order to fullfill these objectives firms will modify the price and/or quality of products
according to one of two strategies. One strategy is price-driven, while the other is quality-driven.

Each consumer will choose the product that maximizes his utility. Consumers will migrate from one product to another as their
quality and price changes.