FEEDBACK MODELS OF MONOPOLISTIC BUSINESS POLICIES: (Part 2: A multiple decision approach) Available to Purchase

In the previous issue of this Journal, the authors described, analysed and enlarged a micro‐economic model by Billstroem and Thore. In this part they present their own simulation model. The model is a three loop system of price‐, advertising‐, production‐, and stock‐policy. Main differences compared with the Billstroem/Thore‐approach are: The model includes interactions between the different business policies mentioned. Both control‐variables and exogenous disturbance‐variables have been included. Each of three subsystems is controlled by a regulator and feed‐forward control unit. Therefore the model of Billstroem/Thore can be called a feedback approach, while the model to be introduced is a feedback‐feed‐forward system with disturbance.