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Pricing policies in an oligopolistic market: A system dynamics study. A study of the design of pricing policies in a manufacturing firm, with specific reference to the synthetic fibre industry.

The objective of this thesis is to investigate and describe components
of pricing system which influence the dynamic performance of a price leader
manufacturing firm in an oligopoly capital intensive industry producing an
identical intermediate product (s). The synthetic fibre industry is chosen as an
illustrative case upon which the discussion is built. However, this work
could generally be applied to a wide variety of organizations and situations.
After discussing the suitability of system dynamics to the formulation
of long-run pricing strategy, a model of the pricing system is constructed
by using this technique. The behaviour of this system is examined in terms
of feedback loops. That is to illustrate how the characteristics of these
loops and the interaction among them affect the dynamic behaviour of the
system, and how this behaviour can be improved via changing the components of
these loops and/or their structures.
The improved system is simulated under different external disturbances,
certain parameter changes, and different pricing control policies. The
simulation shows that the design of a set of robust pricing policies makes the
system insensitive to external disturbance and error in parameters. It also
shows that the ability of the firm to attain its growth and profitability
objectives is affected by the chosen control pricing policies.
Some potential applications of the model, particularly, as planning and
training tools are highlighted.
It is concluded that System Dynamics is an appropriate approach to the
formulation of the long-run pricing strategies.
Date January 1978
CreatorsAbdel-Salam, Mahmoud Y.
ContributorsCoyle, R.G.
PublisherUniversity of Bradford, School of Studies in Management and Administration
Source SetsBradford Scholars
Detected LanguageEnglish
TypeThesis, doctoral, PhD
Rights<a rel="license" href=""><img alt="Creative Commons License" style="border-width:0" src="" /></a><br />The University of Bradford theses are licenced under a <a rel="license" href="">Creative Commons Licence</a>.

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