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.
