Modeling Is Not Quite as Simple in Practice as It

question 4

Essay

Modeling is not quite as simple in practice as it is in theory. What are the issues that must be addressed and solved to make the technique of building simulations workable? Use the example of Galileo's 16th-century experiment dropping balls from the Tower of Pisa within your answer.

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Definitions:

Antitrust Laws

Regulations designed to promote competition and prevent monopolies by limiting the power of large corporations.

Cartels

Groups of independent market participants who collude to control prices and output in an industry to maximize their collective profits.

Inelastic Demand

A situation where the demand for a good or service changes very little in response to changes in price.

Cournot Model

A model of oligopoly in which firms choose their output levels simultaneously, assuming the output of the rivals as given, to maximize their own profit.