Assignment 3: Complex Systems
Ricky Su 43671942
Retail Re-state
Market
Insight Maker is a program that allows users to
create complex interactions among industry or social factors. This program was used to model
the relationships among different players in the real estate market.
This model shows the effects
of changes in supply and demand, demand price and supply cost, availability of
houses and houses prices on the Retail Re-state Market. Each simulation can be
focused on how either Demand, Supply, supply cost, demand price, interest rate
and availability of houses interacts with one another over time.
Demand, Demand Price, Supply, Supply Cost, Interest
Rate, House Market and Houses Prices can be all adjusted by the user using the
sliders [Slider Value 0-100 (000 000
value)] except for interest rate where it limited to 0-0.10. Allowing the user to simulate different scenarios
and view changes in the market.
For Example: A slight change in House Prices will affect the Availability of Houses, House Price and the Supply and Demand dramatically.
When Supply increases, the availability of houses increases while Demand decreases.
Fixed variables/relationships:
Buyer Growth Rate, the Demand Price, Price Demand, Price Decrease, Supply Rate, Supply Price, Price Supply, Price Decrease.
These variables/relationships are shown on yellow. Fixed refers to no adjustments or changes is allow to those specific variables/relationships by the non -editor viewer. These variables cannot be change or adjusted as these variables/relationships are directly related to the information produced. With any changes to the fixed variables/relationships, it can cause incorrect simulation of the model to viewers.
Supply/Supply Cost has a direct relationship to one another as one variable increases the other one decreases. Demand and Demand Price has an inversely relationship related to Price.
House Price is the main reason why someone would sell or buy a house. Price is made up of various different factors. Demand price, demand, supply cost and supply are the main reasons houses price fluctuates.
Availability of Houses is simply New houses and houses Sold, based on If statements, If Demand=>Supply or If Supply <= Demand, the quantity will adjusted to meet the Demand and Supply levels.
Houses Price is simply House Price Increase and Houses Price decrease, based on if statements, If Demand=>Supply Cost or If Supply Cost <= Demand Price, the price will be adjusted to meet the Demand and Supply price.
Interesting Parameter:
This point is interesting
because it shows greatest fluctuations. You will see in Price Impact on
Demand/Supply display when house prices increases, supply will increase while
demand will decrease, as people are less willing to purchase a house at that
price due to high cost vice versa. Market availability and prices, as
availability of houses increases there is a decrease in houses prices causing
excess of supply, leading to an increase in demand as people are more willing
to purchase properties when prices are lower vice versa. Construction shows availability
of new houses, over time houses are sold, when sold houses hits zero, new
houses will increase as there will be a deficient of supply vice versa.
Setting Demand at 100
Setting Demand Price at 100
Supply at 50
Supply Cost 60
Availability of Houses 100
House Prices 85
Interest Rate 0.05
Notes:
There is a slight delay when a change variable is changed in this model. This represents the real market as a change in price, demand or supply doesn’t translate to an immediate action on the market as shown by this model.