FEEDBACK MODELS OF MONOPOLISTIC BUSINESS POLICIES: (Part 2: A multiple decision approach)

Abstract

In the previous issue of this Journal, the authors described, analysed and enlarged a micro‐economic model by Billstroem and Thore. In this part they present their own simulation model. The model is a three loop system of price‐, advertising‐, production‐, and stock‐policy. Main differences compared with the Billstroem/Thore‐approach are: The model includes interactions between the different business policies mentioned. Both control‐variables and exogenous disturbance‐variables have been included. Each of three subsystems is controlled by a regulator and feed‐forward control unit. Therefore the model of Billstroem/Thore can be called a feedback approach, while the model to be introduced is a feedback‐feed‐forward system with disturbance.

Citation

BAETGE, J., BALLWIESER, W., BOLENZ, G., HÖMBERG, R. and WULLERS, P. (1977), "FEEDBACK MODELS OF MONOPOLISTIC BUSINESS POLICIES: (Part 2: A multiple decision approach)", Kybernetes, Vol. 6 No. 2, pp. 81-90. https://doi.org/10.1108/eb005441