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Neteffect

by Gianfranco Barone (Submitted: 08/09/2003)

[screen shot]

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SORRY

I know my english is not so good, so please excuse errors I hope you understand.

WHAT IS IT ?

This project models the demand curve of consumers for a good with externalities, such a fax or phone. The willingnes to buy
this good increase when the number of buyed goods increase due to more utlity of good. Each turtle has an initial willingnes
randomly generated between 0 and 100, the willingnes is a measure of money that a consumer want to spend for the good.
The simulation show how different demand curve can arise when you change something.

This model is inspired from the book by prof. H.Varian "Intermediate Microeconomics" and the paper related can be downloaded from :

http://www.inforules.com/models/m-net.pdf

HOW TO USE IT

Click the SETUP button to set up the turtles. You can set the number of turtles with the slider People. You can also set the magnitude of externalities with the slider network_effects from 0 ( no externalities ) to 5 ( Strong externalities).
The switch dyn_value allow discriminate the prices selling the good to a turtle with a price equal to 80% of his willingnes.
You can note how the revenue of the firm increase when you switch dyn_value 'cause he get the 80% of the consumer surplus.
There are also graphs Willignes show the average willignes among the turtle that still not buyed the good,
Buyers is the number of buyers and so on.

Gianfranco Barone
Send feedback to : pretoria@katamail.com

_______________________________________________________________________________________________________________________________________________

; Networks_Effects by G.Barone
; To refer to this model, please use: Barone, G. (2003). Network_Effects model.
; This model was created as part of AIGEST ( Allievi Ingegneri Gesionali ) website.
; Feel free to use, modify, share et cetera.

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