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MS-172 Bertrand-Edgeworth Competition with Capacity Constraints v05

[Market Simulation] MS-172 Bertrand-Edgeworth Competition with Capacity Constraints
Market Simulation (MS-172) - Bertrand–Edgeworth CompetitionAgain simulates Bertrand Competition between Commodity Products usingthe same model as MS-171. But in this case, each of the Competitors haveCapacity Constraints that limit the number of Products they can sell. Both Spacely Sprockets andCogswell Cogs sell identicalcommodity "Sprocket" Products. The Price Experiment loop willtest changing both the Spacelyand Cogswell Prices up anddown (while keeping theCompetitor's Price constant). Compare all of the Spacely Price Changes: (a)Raise Price, (b) Maintain Same Price, (c) LowerPrice. Then select the Price that maximizes short-term Profit (assuming the Competitor does notchange Price). Compare all of the Cogswell Price Changes: (a)Raise Price, (b) Maintain Same Price, (c) LowerPrice. Then select the Price that maximizes short-term Profit (assuming the Competitor does notchange Price). Collect together the new Priceschosen by both Competitors.These new Prices will bepassed back to the Loop Start. Prices are not driven down toMarginal Cost when there areCapacity Constraints asCompetitors don't expect to beable to satisfy the whole market. Competitors each periodically tryraising Price to increaseProfitability expecting that theother Competitor will maintainPrice. There may exist no pure-strategyNash Equilibrium, but CapacityConstraints ensure that Profitsexist as Price will neverdecrease down to Marginal Cost. Capacity Constraints are definedhere in the Input Product Array. CompetitiveRivalsWillingnessTo Pay (WTP)of CustomersProductArrayProduct ArraywithCapacity ConstraintsDefine:Spacely_PriceSpacely_CostCogswell_PriceCogswell_CostPrice_Change_PercentagePrice ExperimentLoop StartSet ProductCostsSet ProductPrice(No Change)Set ProductPrice(Raise Spacely)Set ProductPrice(Decrease Spacely)Set ProductPrice(Decrease Cogswell)Set ProductPrice(Raise Cogswell)WillingnessTo Pay (WTP)of CustomersRun PriceExperiment #1Run PriceExperiment #2Run PriceExperiment #3Run PriceExperiment #4Run PriceExperiment #5Spacely ResultsSpacely ResultsNo SaleResultsCogswell ResultsCogswell ResultsSpacely ResultsCogswell ResultsSort byMaximum ProfitSort byMaximum ProfitSelectMaximum ProfitSelectMaximum ProfitSelect NewSpacely_PriceSelect NewCogswell_PriceRename NewSpacely_PriceSpacely_CostRename NewCogswell_PriceCogswell_CostPrice_ChangePercentagePrice ExperimentLoop End30 x IterationsTrack ExpectedResultsSpacely ResultsCogswell ResultsSpacely ResultsCogswell ResultsActualPrice TrendExpectedQuantity TrendExpectedRevenue TrendExpectedProfit TrendSpacely ResultsCogswell ResultsSpacely_PriceSpacely_CostCogswell_PriceCogswell_CostConvert Price / Costto Flow VariablesAll Spacely Results:(a) Increase Price(b) Same Price(c) Decrease PriceAll Cogswell Results:(a) Increase Price(b) Same Price(c) Decrease Price Table Creator CustomerDistributions Product Generator Column Filter Table Creator RecursiveLoop Start Java Snippet Java Snippet Java Snippet Java Snippet Java Snippet Java Snippet Column Filter Simulate Market Simulate Market Simulate Market Simulate Market Simulate Market Row Splitter Row Splitter Row Splitter Row Splitter Row Splitter Row Splitter Sorter Sorter Row Filter Row Filter Column Filter Column Filter Column Rename Column Rename ConstantValue Column Recursive Loop End Concatenate Row Splitter Column Rename(Regex) Column Rename(Regex) Line Chart(JFreeChart) Line Chart(JFreeChart) Line Chart(JFreeChart) Line Chart(JFreeChart) Column Appender Column Appender Table Rowto Variable Concatenate Concatenate Market Simulation (MS-172) - Bertrand–Edgeworth CompetitionAgain simulates Bertrand Competition between Commodity Products usingthe same model as MS-171. But in this case, each of the Competitors haveCapacity Constraints that limit the number of Products they can sell. Both Spacely Sprockets andCogswell Cogs sell identicalcommodity "Sprocket" Products. The Price Experiment loop willtest changing both the Spacelyand Cogswell Prices up anddown (while keeping theCompetitor's Price constant). Compare all of the Spacely Price Changes: (a)Raise Price, (b) Maintain Same Price, (c) LowerPrice. Then select the Price that maximizes short-term Profit (assuming the Competitor does notchange Price). Compare all of the Cogswell Price Changes: (a)Raise Price, (b) Maintain Same Price, (c) LowerPrice. Then select the Price that maximizes short-term Profit (assuming the Competitor does notchange Price). Collect together the new Priceschosen by both Competitors.These new Prices will bepassed back to the Loop Start. Prices are not driven down toMarginal Cost when there areCapacity Constraints asCompetitors don't expect to beable to satisfy the whole market. Competitors each periodically tryraising Price to increaseProfitability expecting that theother Competitor will maintainPrice. There may exist no pure-strategyNash Equilibrium, but CapacityConstraints ensure that Profitsexist as Price will neverdecrease down to Marginal Cost. Capacity Constraints are definedhere in the Input Product Array. CompetitiveRivalsWillingnessTo Pay (WTP)of CustomersProductArrayProduct ArraywithCapacity ConstraintsDefine:Spacely_PriceSpacely_CostCogswell_PriceCogswell_CostPrice_Change_PercentagePrice ExperimentLoop StartSet ProductCostsSet ProductPrice(No Change)Set ProductPrice(Raise Spacely)Set ProductPrice(Decrease Spacely)Set ProductPrice(Decrease Cogswell)Set ProductPrice(Raise Cogswell)WillingnessTo Pay (WTP)of CustomersRun PriceExperiment #1Run PriceExperiment #2Run PriceExperiment #3Run PriceExperiment #4Run PriceExperiment #5Spacely ResultsSpacely ResultsNo SaleResultsCogswell ResultsCogswell ResultsSpacely ResultsCogswell ResultsSort byMaximum ProfitSort byMaximum ProfitSelectMaximum ProfitSelectMaximum ProfitSelect NewSpacely_PriceSelect NewCogswell_PriceRename NewSpacely_PriceSpacely_CostRename NewCogswell_PriceCogswell_CostPrice_ChangePercentagePrice ExperimentLoop End30 x IterationsTrack ExpectedResultsSpacely ResultsCogswell ResultsSpacely ResultsCogswell ResultsActualPrice TrendExpectedQuantity TrendExpectedRevenue TrendExpectedProfit TrendSpacely ResultsCogswell ResultsSpacely_PriceSpacely_CostCogswell_PriceCogswell_CostConvert Price / Costto Flow VariablesAll Spacely Results:(a) Increase Price(b) Same Price(c) Decrease PriceAll Cogswell Results:(a) Increase Price(b) Same Price(c) Decrease PriceTable Creator CustomerDistributions Product Generator Column Filter Table Creator RecursiveLoop Start Java Snippet Java Snippet Java Snippet Java Snippet Java Snippet Java Snippet Column Filter Simulate Market Simulate Market Simulate Market Simulate Market Simulate Market Row Splitter Row Splitter Row Splitter Row Splitter Row Splitter Row Splitter Sorter Sorter Row Filter Row Filter Column Filter Column Filter Column Rename Column Rename ConstantValue Column Recursive Loop End Concatenate Row Splitter Column Rename(Regex) Column Rename(Regex) Line Chart(JFreeChart) Line Chart(JFreeChart) Line Chart(JFreeChart) Line Chart(JFreeChart) Column Appender Column Appender Table Rowto Variable Concatenate Concatenate

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Created by: Berlin
Created at: 2018-10-18
On NodePit since: 2021-02-05
Last update: 2024-11-18
Created with KNIME version: v4.3.0

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