Category: Market Simulation

Shows how Geographic Differentiation provides Market Power to many pizza vendors all over a city.

Predicts the source of Customers for a newly introduced Coca Cola Product and the degree of same-brand cannibalization.

The Market Simulation workflow iterates through a number of Feature options to find the best Product Variation to extend the existing Coca Cola Product Line.

Simulates the failure of a copycat Product in the SUV Market to grow Sales and Market Share.

Shows how the Double Marginalization problem creates an inefficiency when a Wholesaler and a Retailer both add margin to a Product.

Much less data is required to tune a Market Simulation than might be expected. This workflow shows how the Mean and Correlation of the Products in a Willingness To Pay (WTP) Matrix can be found with only two Market Observations.

Simultaneously setting Prices for multiple Products is complicated by same-store cannibalization. This workflow shows how to set Prices for the ‘Good’ Product, the ‘Better’ Product, and the ‘Best’ Product in a way that maximizes total Profitability for the store.

The Market Leader picks an optimal Pricing Strategy based upon their predicted ‘Best Response’ of the Market Follower.

Simulates Bertrand Competition between Commodity Products where each of the two Competitors are experimenting by raising and lowering Price to maximize their short-term Profit.

Again simulates Bertrand Competition between Commodity Products, but in this case each of the Competitors have Capacity Constraints that limit the Quantity of Products they can sell.

Explores another variation of Bertrand Competition. The Products in this Market are, again, undifferentiated Commodity Products, but there are Search Costs that limit Customer awareness of each Product.

Evaluates how the Bertrand Competition Model breaks down when the Products are no longer Commodities but are Differentiated from one another.