Preprint Article Version 1 Preserved in Portico This version is not peer-reviewed

Three Generic Policies for Sustained Market Growth Based on Two Interdependent Organizational Resources – A Simulation Study and Implications

Version 1 : Received: 15 May 2021 / Approved: 17 May 2021 / Online: 17 May 2021 (09:05:10 CEST)

A peer-reviewed article of this Preprint also exists.

Schaffernicht, M.F.G. Three Generic Policies for Sustained Market Growth Based on Two Interdependent Organizational Resources—A Simulation Study and Implications. Systems 2021, 9, 43. Schaffernicht, M.F.G. Three Generic Policies for Sustained Market Growth Based on Two Interdependent Organizational Resources—A Simulation Study and Implications. Systems 2021, 9, 43.

Journal reference: Systems 2021, 9, 43
DOI: 10.3390/systems9020043

Abstract

This article addresses the generic dynamic decision problem of how to achieve sustained market growth by increasing two interdependent organizational resources needed (1) to increase and (2) to sustain demand. The speed and costs of increasing each resource are different. Failure to account for this difference has been reported to lead to policies that drive a quick increase of demand followed by decline. Three generic policies derived from the literature have been implemented in a system dynamics model. Simulation shows that all three policies can generate sustained exponential growth but differ in performance. These results suggest that even policies which risk generating overshoot and collapse can avoid it. This poses two questions for further research: (1) what is the reasoning of human decision-makers when choosing between these policies and (2) how can the important but easily overlooked features of such decision situations be made sufficiently salient to be accounted for?

Subject Areas

dynamic decision-making; interdependency; organizational resources; overshoot and collapse; simulation

Comments (0)

We encourage comments and feedback from a broad range of readers. See criteria for comments and our diversity statement.

Leave a public comment
Send a private comment to the author(s)
Views 0
Downloads 0
Comments 0
Metrics 0


×
Alerts
Notify me about updates to this article or when a peer-reviewed version is published.
We use cookies on our website to ensure you get the best experience.
Read more about our cookies here.