Lecture_Notes        Prices        

The following spreadsheet simulates the iterative method used in central price fixing before the computers were used for this purpose in 1966. An initial state is a consistent price system. This is visible from the fact that "Prices A" are equal to "Prices B". You can push the system to be inconsistent by changing any of the technical coefficients or the percentage of the profit margin. Then your task is to return the price system back to consistency by adjusting the "Prices A" until they get equal to "Prices B".  Do not touch any of the black figures! If you make mistake, reload the whole page, this will bring the spread sheet back to original situation.

Note: The consistency of the price system means that the prices used for calculating costs (A) are the same as calculated prices (B).




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