Presentation

On
Reviews on Some Dynamic Market Models by Jan A. Audestad

Submitted by: Submitted to:

Md. RIAD HOSSEN Dr. Mohammed Forhad Uddin

ID- 0423092506 Professor

M.Sc. (Term-1) ,Session :April-23 Department of Mathematics,

Bangladesh University of Engineering and
Department Mathematics, Bangladesh Technology
University of Engineering and Technology
B.Sc. in Applied Mathematics, Noakhali
Science and Technology University.
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 Some Dynamic Market Models

1. What is this about ?

the behavior of markets using models expressible as ordinary differential equations. The markets studied
are those where each customer buys only one copy of the good, for example, subscription of smartphone
service, journals and newspapers, and goods such as books, music and games.

2. What was done?

In this research paper which focusing on market behavior using mathematical models expressed as ordinary
differential equations (ODEs).
• There are 4 types of markets which is discussed in this paper.
1. innovators and imitators
2. with competition and without competition
3. Markets with feedback and Markets without feedback.
4. Market with more than one supplier
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• Some Market Models
1. Bass Model for Market Evolution
2. The BPQ market model (Equivalence to the SIR model
of epidemiology)

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3. Why is this topic important?
I. Understanding Market Behavior
II. Risk Management
III. Investment Decisions
IV. Asset Pricing
V. Policy Formulation
VI. Financial Regulation
VII. Risk Assessment
VIII. Market Monitoring
IX. Financial Innovation

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4. Key result

 Market dynamics In a dynamic market model, temporal evolution of the market is studied
 System dynamics is a useful tool in cases where the market behavior is so complex that it is
impractical or not even meaningful to use simple analytic tools
 As with all simulation methods, system dynamics will not provide us with general solutions and
general insight into the problem
 The use of interacting agents is another simulation method that may be used to study the evolution
of the market.
 In this text, we shall only look at some simple market models where analytic solutions exist, and
from which, important conclusions can be drawn
 The parameter may depend on both time and the number of players already playing the game; that
is, there may be a positive feedback from the market or a network effect encouraging new players
to enter the game;

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5. Finding

The latency times and the time it takes the market to increase from 50% to 60% for different
feedback strengths are compared