Simulation Modeling of Competitive Strategy of Pricing
Efficiency of commercial activities depends on many factors. One of the tools to study their influence is mathematical modeling. The goal of the study is to conduct a computational experiment that simulates the dynamics of the supplier’s sales volumes in a competitive environment under various initial conditions. We take into account the possibility of changing the price of products (goods), depending on changes in sales volumes. The limitation of the experiment is the conditions of the local market and the presence of the maximum value of purchasing power within it. To conduct an experiment, it is necessary to solve the following tasks: to find out the impact of sales volumes changes caused by competition on changes of the price of products (and the price of products must be calculated according to product aging factor); to consider consumers’ preferences, on which “consumer-supplier” relationships are based and to determine the relationship between the pricing models and the model of competing relations of the “supplier-suppliers” type. To achieve this goal, we employed heuristic methods of simulation modeling and the analogy method (universality). Based on simulation modeling and the method of analogies (universality), we developed a mathematical model as a part of a computational experiment. The former simulates the market price of a product and the dynamics of sales volumes of a supplier, which considers correlation between the market price for products (goods) and their aging factor, as well as consumers’ preferences and pricing model and competing relationship model. The application of the mathematical model developed by the authors allows to take into account many interrelated factors that influence the sales dynamics of market participants in real economic situations.