Category: Market Optimization

This Market Optimization workflow rapidly simulates a simple Price War in a Commodity Market.

A Market of Orthogonal Products is rapidly simulated in a simple Price War where one Competitor has a Cost disadvantage.

Examines what happens to Price and Profitability when Competitors add undifferentiating Commodity Features to their Products.

Shows how the Willingness To Pay (WTP) for Products will increase at a much faster rate than Prices when Competitors are not improving their Products with differentiating Features.

Increasing Competition is supposed to drive Prices down. But these thirsty bathers on a hot beach demonstrate that increasing Competition can also increase Prices.

Hotelling’s Law predicts that two vendors selling water will be located next to each other at mid-point along a hot beach. But what about three vendors? Or four vendors? This workflow explorers how vendors find locations that optimize their profitability.