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Article

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

Facultad de Economía y Negocios, Universidad de Talca, Talca 3460000, Chile
Academic Editor: Vladimír Bureš
Received: 18 May 2021 / Revised: 3 June 2021 / Accepted: 4 June 2021 / Published: 11 June 2021
(This article belongs to the Collection System Dynamics)
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 leads 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 they all can generate sustained exponential growth but differ in performance: even policies criticized in the literature for provoking overshoot and collapse can drive sustained growth. This leads to questions for further research regarding (1) the set of generic policies and its structure and (2) concerning the reasoning of human decision-makers when choosing between such policies and the salience of important but easily overlooked features of the decision situation. View Full-Text
Keywords: dynamic decision-making; interdependency; organizational resources; overshoot and collapse; simulation dynamic decision-making; interdependency; organizational resources; overshoot and collapse; simulation
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MDPI and ACS Style

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. https://0-doi-org.brum.beds.ac.uk/10.3390/systems9020043

AMA Style

Schaffernicht MFG. Three Generic Policies for Sustained Market Growth Based on Two Interdependent Organizational Resources—A Simulation Study and Implications. Systems. 2021; 9(2):43. https://0-doi-org.brum.beds.ac.uk/10.3390/systems9020043

Chicago/Turabian Style

Schaffernicht, Martin F.G. 2021. "Three Generic Policies for Sustained Market Growth Based on Two Interdependent Organizational Resources—A Simulation Study and Implications" Systems 9, no. 2: 43. https://0-doi-org.brum.beds.ac.uk/10.3390/systems9020043

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