A Dynamic Market Share Allocation Model for Computerized Business Simulators

Abstract

Market demand models in simulators using old design technology do not model the purchase behavior of individual buyers, do not maintain independence between buyers and suppliers, and simulate zero-sum market share allocation processes. A new model is presented which realistically models the behavior of individual buyers, maintains independence of action between buyers and suppliers while allowing for reciprocal influence, and can be used to simulate either a zero-sum share allocation process or a shared-sum allocation process.