This is the model for a paper that is based on a simulation model, programmed in Netlogo, that demonstrates changes in market structure that occur as marginal costs, demand, and barriers to entry change. Students predict and observe market structure changes in terms of number of firms, market concentration, market price and quantity, and average marginal costs, profits, and markups across the market as firms innovate. By adjusting the demand growth and barriers to entry, students can […]
This model simulates the motion picture industry and tests how social influences affect market shares. It is empirically validated at the micro level by a cross-cultural survey.