SIMULATION MODELING OF MARKET EQUILIBRIUM

Abstract

There are many factors in the market that influence its behavior: tastes and preferences of consumers, interests of consumers and sellers, competition, market monopolization, legislation in the country, seasonal changes. Some are random in nature. It is impossible to take everything into account. The market of one product is considered from the point of view of the seller who sells it. At the same time, three cases are possible: a shortage of goods, a surplus of goods and an equilibrium state. A model was built, the purpose of which is to determine the optimal volume of purchases, which provides the seller with the greatest profit. Delivery delays and market inertia are also taken into account. An approach such as simulation modeling is used for market research. Application of the simulation model is of great importance for the analysis of economic phenomena. This provides advantages compared to performing experiments on a real system and using other methods. Analyzed Walras-Marshall models and web-like model. In the Walras-Marshall model, market value depends on supply and demand, that is, on the needs and funds of buyers, on the one hand, and on the labor and costs of producers, on the other. The dynamic model determines the change of market factors over time. All variables are functions of time. In the spider-like model, the volume of supply reacts to price changes with some delay. Then the analysis of the model is complicated. The amount of demand is determined by the prices of the current period, and the amount of supply is determined by the prices of the previous period, that is, the required amount of goods arrives late. Solving the task of finding optimal purchase volumes, a market model without a supply line is considered. The demand function is assumed to be constant. Delayed deliveries are taken into account. The price is determined by the market, that is, for a fixed volume of goods, the market price is set, it is this price that provides the greatest profit. By changing purchasing strategies and order volumes, you can choose the optimal strategy in such a way as to determine the optimal supply line. Market inertia means that the price is constant over a short period of time. Certain limits limit the trader from significantly increasing or decreasing the price.