# Price Models

These models and simulations have been tagged “Price”.

Documentation

The Insight shown demonstrates how demand and supply in a real estate market can affect pricing.

Demand, Supply and Price have been represented by stocks. Each has an inflow where it has an increase in stock, and a corresponding outflow where stock is decreased.

Linking each stock and flow is a variable that changes that which it is linked to. These have been labelled appropriately. Each variable takes a decimal value and multiplies it with that it is linked to, such as the rate of demand affecting the price set as 0.001*Demand. This is to generate the loops required to show the rise and fall in price, demand and supply.

Adjustments can be made to the price, supply and demand stocks to simulate different scenarios. Price can be between 400 (400,000) and 1000 (1,000,000) in accordance to average housing prices. Demand and supply can be between 0 (0%) and 100 (100%), although having these set as realistic figures will demonstrate the simulation best.

Each simulation can be focused on how either demand and price interact over time or supply and price. These are shown in different tabs.

When the simulation is carried out, the way in which demand and supply rates affect pricing can be seen. Demand and supply are shown with price following shortly after with a slight delay, since changes in market behavior does not immediately affect prices of housing.

It should also be noted that the lines that represent each stock do not directly reflect the prices of housing in reality. Prices do not fluctuate so rapidly from 400 to near 0 like they do on the graph, however these are just representations of the interactions between each stock in a marketplace.
Based on the Market and Price simulation model in System Zoo 3.
I wrote an explanation of the model which you can find here: https://docs.google.com/document/d/1yRTtZvOOrFiBlK6pkvbpSUv_ajvGMKSAbfthRTBPU-8/edit?usp=sharing
7 last month

Real Estate Marketplace Modeling diagram

This model is to explain the relationships among different players in a real estate marketplace, including the simple economic concept, for example, demand, supply, price, etc. The model is basically two years monthly based. It starts with a relationship between demand, supply and price. These three main determines are interdependent and affect other others. Moreover, there are few variables in the model, the price elasticity of demand and supply are included in order to successfully predict the flow of price since all determines are dynamic numbers but not a fixed number. Simultaneously, buying and selling ratio are in the model to demonstrate the proportion of residents and owners to buy and sell. When people are highly interested to buy a new home, their motivation are based on the demand and supply in the market. If demand goes up, supply goes down, price will go up. If the price goes down, demand will soon goes up because the price is low so people can become home buyers.

• ·        When the supply in the market is high, no home owners would like to sell their homes because the price is low and they are not able to maximize their profit.  Once the supply goes up and demand goes up, homes will add stock into market so more homes will be for sale.

• ·        If people become home buyers and new homeowners, the flow will go back to people because they become owners and their homes can be sale afterwards. Hence if a home is sold then it can come back to homes. Sales are done deal when a home for sale becomes a sold home and a home buyer becomes a new home owner.

• ·        Finally, price is determined by the buying ratio and selling ratio. Buying and selling ratio are basically calculated from homes for sales, total homes, total population and home buyers. Though the peak and downturn of buying ratio and selling ratio are significant factors to decide the value of a home.

• ·        Sliders are added to let readers to change the parameters to have different stimulation results.
<!--[if !supportLists]-->

Documentation

The Insight shown demonstrates how demand and supply in a real estate market can affect pricing.

Demand, Supply and Price have been represented by stocks. Each has an inflow where it has an increase in stock, and a corresponding outflow where stock is decreased.

Linking each stock and flow is a variable that changes that which it is linked to. These have been labelled appropriately. Each variable takes a decimal value and multiplies it with that it is linked to, such as the rate of demand affecting the price set as 0.001*Demand. This is to generate the loops required to show the rise and fall in price, demand and supply.

Adjustments can be made to the price, supply and demand stocks to simulate different scenarios. Price can be between 400 (400,000) and 1000 (1,000,000) in accordance to average housing prices. Demand and supply can be between 0 (0%) and 100 (100%), although having these set as realistic figures will demonstrate the simulation best.

Each simulation can be focused on how either demand and price interact over time or supply and price. These are shown in different tabs.

When the simulation is carried out, the way in which demand and supply rates affect pricing can be seen. Demand and supply are shown with price following shortly after with a slight delay, since changes in market behavior does not immediately affect prices of housing.

It should also be noted that the lines that represent each stock do not directly reflect the prices of housing in reality. Prices do not fluctuate so rapidly from 400 to near 0 like they do on the graph, however these are just representations of the interactions between each stock in a marketplace.
Modelo: El precio como factor clave en la demanda de productos.
Das Modell skizziert die Ursachen und Wirkungen, die den Silberpreis nach oben oder nach unten treiben.

The model scetches the causes and effects, which make the price of silver to move either up or down.

Documentation

The Insight shown demonstrates how demand and supply in a real estate market can affect pricing.

Demand, Supply and Price have been represented by stocks. Each has an inflow where it has an increase in stock, and a corresponding outflow where stock is decreased.

Linking each stock and flow is a variable that changes that which it is linked to. These have been labelled appropriately. Each variable takes a decimal value and multiplies it with that it is linked to, such as the rate of demand affecting the price set as 0.001*Demand. This is to generate the loops required to show the rise and fall in price, demand and supply.

Adjustments can be made to the price, supply and demand stocks to simulate different scenarios. Price can be between 400 (400,000) and 1000 (1,000,000) in accordance to average housing prices. Demand and supply can be between 0 (0%) and 100 (100%), although having these set as realistic figures will demonstrate the simulation best.

Each simulation can be focused on how either demand and price interact over time or supply and price. These are shown in different tabs.

When the simulation is carried out, the way in which demand and supply rates affect pricing can be seen. Demand and supply are shown with price following shortly after with a slight delay, since changes in market behavior does not immediately affect prices of housing.

It should also be noted that the lines that represent each stock do not directly reflect the prices of housing in reality. Prices do not fluctuate so rapidly from 400 to near 0 like they do on the graph, however these are just representations of the interactions between each stock in a marketplace.
A feedback loop on price and demand that I use as an illustration in a post.
10 months ago
Documentation

The Insight shown demonstrates how demand and supply in a real estate market can affect pricing.

Demand, Supply and Price have been represented by stocks. Each has an inflow where it has an increase in stock, and a corresponding outflow where stock is decreased.

Linking each stock and flow is a variable that changes that which it is linked to. These have been labelled appropriately. Each variable takes a decimal value and multiplies it with that it is linked to, such as the rate of demand affecting the price set as 0.001*Demand. This is to generate the loops required to show the rise and fall in price, demand and supply.

Adjustments can be made to the price, supply and demand stocks to simulate different scenarios. Price can be between 400 (400,000) and 1000 (1,000,000) in accordance to average housing prices. Demand and supply can be between 0 (0%) and 100 (100%), although having these set as realistic figures will demonstrate the simulation best.

Each simulation can be focused on how either demand and price interact over time or supply and price. These are shown in different tabs.

When the simulation is carried out, the way in which demand and supply rates affect pricing can be seen. Demand and supply are shown with price following shortly after with a slight delay, since changes in market behavior does not immediately affect prices of housing.

It should also be noted that the lines that represent each stock do not directly reflect the prices of housing in reality. Prices do not fluctuate so rapidly from 400 to near 0 like they do on the graph, however these are just representations of the interactions between each stock in a marketplace.
Based on the Market and Price simulation model in System Zoo 3.
10 months ago

Clone of  IM Health Expenditure australia 2015-6 (Table A3 with past year change) with 2015-6 detail added from NH Funding pool annual report website. Also current and emerging IHPA pricing classifications See also combined performance and activity stock flow IM IHPA and NHPA

Based on the Market and Price simulation model in System Zoo 3. Used in the System Thinking section of Regenerative Economics.
5 months ago
Based on the Market and Price simulation model in System Zoo 3, Z504. In this model the profit calculations were not realistic. They were based on the per unit profit, which does not take items not sold into account. Also the model was not very clear on profit since it was included in the total production costs and consequently in the unit costs and subsequently profit was calculated by subtracting unit costs of the market price. Thus profit had a double layer which does not make the model better accessible. I have tried to remedy both in this simplified version.
3 2 months ago
In this Insight I focus on the demand site of the Market and Price model, leaving the supply side out.
last month
I made this diagram to illustrate a piece of text from the Regenerative Economics textbook.
last month
This model is made to illustrate how price, through profit, can inform investment decisions.
last month
Most basic dynamic representation of the price mechanism.
A description of this model can be found here: https://docs.google.com/document/d/1_0IhFP3Gszi0UeIb6rNSckISm93vqA1RioqHsUVXxnA/edit?usp=sharing.
5 last week
This model is made to illustrate the components that impact profitability on a basic level.
last month
Based on the Market and Price simulation model in System Zoo 3, Z504. I made some more intrusive changes that make the model more realistic, or more 'economic', in another version 'simplified and improved'.
4 2 months ago
In this diagram I am analysing how demand for one product will react to the price level of goods that are complementary. Think of a coffee machine and coffee filters, pads or beans. Or a printer and its ink. A car and electricity. The complement has to be something that define the usage costs of the product under scrutiny.
3 2 weeks ago
Dynamic representation of the price mechanism with demand and supply function and a delay. This model has interactive elements.