Modeling Interactive Effects In Mathematical Functions For Business Simulations: A Critique of Goosen's Interpolation Approach


  • Steven C. Gold


Goosen (1986) presented an interpolation approach as a simplified and effective way to model complex and non-linear demand and cost functions in computerized business simulations. However the usefulness of the approach becomes limited when one considers the possibility of interactive effects between the dependent and independent variables which are embodied in most business relationships. The important issue of interactive effects are not directly addressed in Goosen's interpolation method and it is not clear how these types of effects would be systematically included in the general case. The potential usefulness and application of the interpolation method depends on whether or not it could directly and efficiently address the procedures necessary to incorporate interactive effects.