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MS-161 Stackelberg Leader-Follower Price Competition v05

[Market Simulation] MS-161 Stackelberg Leader-Follower Price Competition
Market Simulation (MS-161) - Stackelberg Leader-Follower Price CompetitionThe Market Leader picks an optimal Pricing strategy based upon the known"Best Response" of the Market Follower.In this Market Simulation, the Leader first predicts the Best Responses of theFollower for a sequence of Test Prices (that is, how the Follower will respondonce it has observed the Price of the Leader). The Leader then picks the Pricethat maximizes its Profit, anticipating the predicted response of the Follower. Test all Leader Prices from $70to $200 then calculate thepredicted "Best Response" fromthe Follower. The "Best Response" of theFollower is the Price thatmaximizes the Follower'sProfitability. The Leader should set Price =$100 as that is the Leader'sProfit Maximizing Price knowingthat the Follower will set their"Best Response" Price. The Leader has a $10 CostAdvantage over the Follower. Butaverage Willingness To Pay(WTP) of Customers is the samefor both Products.Leader vs FollowerProductsWTPMatrixPriceExperimentsSet TestPricePredict"Best Response"of FollowerExclude'No Sale'TrackResultsLeader vs.FollowerLeaderResultsFollowerResultsNextPrice ExperimentProduct ArrayWTP MatrixProduct ArrayWTP MatrixLeader vs. FollowerPriceLeader vs. FollowerMarket ShareLeader vs. FollowerProfitLeader vs. FollowerRevenueLeader vs.FollowerFlow VariablesLeader vs.FollowerKPI Table Creator CustomerDistributions Tuning Loop Start ConstantValue Column Price Maximize Row Filter Column Filter Row Splitter Column Rename(Regex) Column Rename(Regex) Tuning Loop End Pass-Thru MarketDefinition Pass-Thru MarketDefinition Line Chart(JFreeChart) Line Chart(JFreeChart) Line Chart(JFreeChart) Line Chart(JFreeChart) Table Rowto Variable Column Appender Market Simulation (MS-161) - Stackelberg Leader-Follower Price CompetitionThe Market Leader picks an optimal Pricing strategy based upon the known"Best Response" of the Market Follower.In this Market Simulation, the Leader first predicts the Best Responses of theFollower for a sequence of Test Prices (that is, how the Follower will respondonce it has observed the Price of the Leader). The Leader then picks the Pricethat maximizes its Profit, anticipating the predicted response of the Follower. Test all Leader Prices from $70to $200 then calculate thepredicted "Best Response" fromthe Follower. The "Best Response" of theFollower is the Price thatmaximizes the Follower'sProfitability. The Leader should set Price =$100 as that is the Leader'sProfit Maximizing Price knowingthat the Follower will set their"Best Response" Price. The Leader has a $10 CostAdvantage over the Follower. Butaverage Willingness To Pay(WTP) of Customers is the samefor both Products.Leader vs FollowerProductsWTPMatrixPriceExperimentsSet TestPricePredict"Best Response"of FollowerExclude'No Sale'TrackResultsLeader vs.FollowerLeaderResultsFollowerResultsNextPrice ExperimentProduct ArrayWTP MatrixProduct ArrayWTP MatrixLeader vs. FollowerPriceLeader vs. FollowerMarket ShareLeader vs. FollowerProfitLeader vs. FollowerRevenueLeader vs.FollowerFlow VariablesLeader vs.FollowerKPITable Creator CustomerDistributions Tuning Loop Start ConstantValue Column Price Maximize Row Filter Column Filter Row Splitter Column Rename(Regex) Column Rename(Regex) Tuning Loop End Pass-Thru MarketDefinition Pass-Thru MarketDefinition Line Chart(JFreeChart) Line Chart(JFreeChart) Line Chart(JFreeChart) Line Chart(JFreeChart) Table Rowto Variable Column Appender

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Created by: Berlin
Created at: 2018-09-18
On NodePit since: 2021-02-05
Last update: 2024-04-18
Created with KNIME version: v4.3.0

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