Market Simulation
Project description
Market Simulation Documentation
Overview
Institut Merbau 2025
The simulation models a simple economic market with multiple sellers and buyers. Sellers offer products with dynamic pricing and limited inventory, while buyers decide whether to purchase based on both price and their perceived marginal utility of the product. Buyers have heterogeneous income levels, drawn from a predefined distribution, which affects their purchasing power and decision-making. The simulation iterates over many rounds, tracking prices, profits, bankruptcies, and the evolving distribution of buyer budgets.
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