This paper is concerned with the use of spectral analysis to analyze data generated by computer simulation experiments with models of economic systems. An example model serves to illustrate two different applications of spectral analysis. First, spectral analysis is used to construct confidence bands and to test hypotheses for the purpose of comparing the results of the use of two or more alternative economic policies. Second, spectral analysis is employed as a technique for validating an econometric model.
This paper addresses itself to the problem of analyzing data generated by computer simulations of economic systems. We first turn to a hypothetical firm, whose operation is represented by a single-channel, multistation queueing model. The firm seeks to maximize total expected profit for the coming period by selecting one of five operating plans, where each plan incorporates a certain marketing strategy, an allocation of productive inputs, and a total cost.The results of the simulated activity under each plan are subjected to an F-test, two multiple comparison methods, and a multiple ranking method. We illustrate, compare, and evaluate these techniques. The paper adopts the position that the particular technique of analysis (possibly not any one of the above) chosen by the experimenter should be an expression of his experimental objective: The F-test tests the homogeneity of the plans; multiple comparison methods quantify their differences; and multiple ranking methods directly identify the one best plan or best plans,
The Pigou‐Robinson pricing rule for third degree monopolistic price discrimination states that price ratios vary inversely with ratios of direct price elasticities of demand. The rule holds when markets are sealed, and cross price elasticities of demand are zero. We show how the rule can fail when imperfect sealing permits leakage. We also develop a general discriminatory pricing rule that holds when leakage causes market demands to be related. The general pricing rule is based on all direct price elasticities of demand, all cross price elasticities of demand, and the size distribution of the markets
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.