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Beyond the Gold and Pray equation: Introducing interrelationships in industry-level unit demand equations for business games

Author

Listed:
  • Elizabeth J. Tipton Murff

    (Eastern Washington University, USA, ejtmurff@mail.ewu.edu)

  • Richard D. Teach

    (Georgia Institute of Technology, USA, Richard.Teach@mgt.gatech.edu)

  • Robert G. Schwartz

    (Eastern Washington University, USA, rschwartz@mail.ewu.edu)

Abstract

Product unit demand is determined by many factors in business simulations; among these are the marketing variables of price, place, promotion, and quality. In the actual marketplace, however, these variables are not independent as is assumed by many simulation algorithms in the literature. This article discusses the need for and development of a two-attribute multiple-market-segment industry-level unit demand equation that explicitly includes the correlation between the two variables that affect demand (price and promotion) that form the domain of the unit demand equation for the model described in this article.

Suggested Citation

  • Elizabeth J. Tipton Murff & Richard D. Teach & Robert G. Schwartz, 2007. "Beyond the Gold and Pray equation: Introducing interrelationships in industry-level unit demand equations for business games," Simulation & Gaming, , vol. 38(2), pages 168-179, June.
    • Handle: RePEc:sae:simgam:v:38:y:2007:i:2:p:168-179
    DOI: 10.1177/1046878107300445
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    References listed on IDEAS

    as
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    Cited by:

    1. Precha Thavikulwat, 2017. "Recipes for Structural Fairness in Games," Simulation & Gaming, , vol. 48(5), pages 670-694, October.

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