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MS-194 Diminishing Marginal Utility v05

[Market Simulation] MS-194 Diminishing Marginal Utility
Market Simulation (MS-194) - Diminishing Marginal UtilityShows how to simulate Customers buying multiple different Products from aCategory. The Law of Diminishing Marginal Utility states that after a Customerpurchases a Product they are less likely to purchase the same Product againat the same time. This may be the case when the Customer is trying tosimultaneously satisfy a range of needs from the Category. For example, theCustomer may also be shopping for other members of the household, or theCustomer may be planning on consuming the Products at different times. Competitive Story:This Market Simulation is designed to model supermarket Customers buyingfrozen dinners for the upcoming week. The choice of frozen dinners include: (a)Beef, (b) Pork, (c) Chicken, (d) Fish, (e) Noodles, and (f) Vegetarian. SomeCustomers have a clear preference and will repeatedly buy the same Productseveral times, while other Customers prefer to buy a variety of dishes. SomeCustomers will stock up by buying many frozen dinners, while other Customersmay just buy one or two dishes to supplement the other dinners they have duringthe week. Step 1: Define the Willingness ToPay (WTP) for all of theCustomers and all of theProducts in the Market. Step 2: Iterate 7 times to makedecisions about which FrozenDinner to eat each day for thenext week. Step 3: If the Customerpurchased a Frozen Dinner thenreduce their Marginal Utility forthat Product (that is, their WTP) tobuy the same Product again. Step 4: Group together all theProducts purchased by all of theCustomers.Frozen DinnerChoicesCustomerWTP MatrixPredict ProductPurchasedIterate NextPurchase ChoiceReduce WTP ofPurchased ProductFill WeeklyShopping CartTrackCustomerCustomerShopping CartsSetCustomerID Table Creator CustomerDistributions Simulate Market RecursiveLoop Start Scale Purchased Recursive Loop End RowID GroupBy RowID Market Simulation (MS-194) - Diminishing Marginal UtilityShows how to simulate Customers buying multiple different Products from aCategory. The Law of Diminishing Marginal Utility states that after a Customerpurchases a Product they are less likely to purchase the same Product againat the same time. This may be the case when the Customer is trying tosimultaneously satisfy a range of needs from the Category. For example, theCustomer may also be shopping for other members of the household, or theCustomer may be planning on consuming the Products at different times. Competitive Story:This Market Simulation is designed to model supermarket Customers buyingfrozen dinners for the upcoming week. The choice of frozen dinners include: (a)Beef, (b) Pork, (c) Chicken, (d) Fish, (e) Noodles, and (f) Vegetarian. SomeCustomers have a clear preference and will repeatedly buy the same Productseveral times, while other Customers prefer to buy a variety of dishes. SomeCustomers will stock up by buying many frozen dinners, while other Customersmay just buy one or two dishes to supplement the other dinners they have duringthe week. Step 1: Define the Willingness ToPay (WTP) for all of theCustomers and all of theProducts in the Market. Step 2: Iterate 7 times to makedecisions about which FrozenDinner to eat each day for thenext week. Step 3: If the Customerpurchased a Frozen Dinner thenreduce their Marginal Utility forthat Product (that is, their WTP) tobuy the same Product again. Step 4: Group together all theProducts purchased by all of theCustomers.Frozen DinnerChoicesCustomerWTP MatrixPredict ProductPurchasedIterate NextPurchase ChoiceReduce WTP ofPurchased ProductFill WeeklyShopping CartTrackCustomerCustomerShopping CartsSetCustomerIDTable Creator CustomerDistributions Simulate Market RecursiveLoop Start Scale Purchased Recursive Loop End RowID GroupBy RowID

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Created by: Berlin
Created at: 2018-11-27
On NodePit since: 2021-02-05
Last update: 2024-04-28
Created with KNIME version: v4.3.0

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