Documentation

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.
  
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• ·        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.
  
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• ·        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.
  
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• ·        Sliders are added to let readers to change the parameters to have different stimulation results.
  

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Documentation

Based on the Market and Price simulation model in System Zoo 3.

Documentation

Modelo: El precio como factor clave en la demanda de productos.

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

 A feedback loop on price and demand that I use as an illustration in a post.

Documentation

Based on the Market and Price simulation model in System Zoo 3.

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.

In this Insight I focus on the demand site of the Market and Price model, leaving the supply side out.

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.

Most basic dynamic representation of the price mechanism.

I made this diagram to illustrate a piece of text from the Regenerative Economics textbook.

This model is made to illustrate how price, through profit, can inform investment decisions.

This model is made to illustrate the components that impact profitability on a basic level. 

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. 

Most basic dynamic representation of the effect of the possibility of substitution in the price mechanism.

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'. 

A basic representation of the price mechanism that includes other demand factors.

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.

Most basic representation of the price mechanism.