The conceptual model of any process of price dynamics includes the interaction of three subsystems, which can be conditionally called “commodity producer”, “consumer” and “market” (Fig.7.17.). The spider-like model (model A), in which demand lags behind supply by one period: D(Pt+1)=S(Pt), also fits into the scheme of Figure 7.17. Rice. 7.17. Conceptual scheme of the […]
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Models of private economic equilibrium. Spider web market model
Spider-like model of market price dynamics. Assumptions and main components of the model All the theoretical constructions presented in this work are based on the assumption that the perfect nature of competition is that all households and enterprises act in accordance with market prices. In other words, we are talking about a parametric pricing system. […]
Strategy for industry leaders
The competitive positions of industry leaders are either much stronger than those of others, or dominant. Leaders are well known in the industry and use tried and tested strategies (lead by cost or through differentiation). Prominent industry leaders include Anheuser-Busch (beer), IBM (computers), Microsoft (software), McDonald’s (fast food restaurants), Gillette (shaving accessories), Campbell’s Soup (concentrated […]