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Analysis of Price Equilibriums in the Aspen Economic Model under Various Purchasing Methods

Technical Report ·
DOI:https://doi.org/10.2172/805866· OSTI ID:805866

Aspen, a powerful economic modeling tool that uses agent modeling and genetic algorithms, can accurately simulate the economy. In it, individuals are hired by firms to produce a good that households then purchase. The firms decide what price to charge for this good, and based on that price, the households determine which firm to purchase from. We will attempt to discover the Nash Equilibrium price found in this model under two different methods of determining how many orders each firm receives. To keep it simple, we will assume there are only two firms in our model, and that these firms compete for the sale of one identical good.

Research Organization:
Sandia National Labs., Albuquerque, NM (US); Sandia National Labs., Livermore, CA (US)
Sponsoring Organization:
US Department of Energy (US)
DOE Contract Number:
AC04-94AL85000
OSTI ID:
805866
Report Number(s):
SAND2002-3693
Country of Publication:
United States
Language:
English