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MarketPoint technology simulates market behavior by creating a network model of each economically distinct element of the industry. Models are comprehensive and include raw material sources, production plants, storage facilities, transportation routes, competing products, competing technologies and final market demand. Microeconomic theory is used to simulate the real world interaction of these elements to determine future prices, production levels, demands, investments and profitability. The network interconnection of elements means that every action in the network influences every other action, requiring a lot of computing power to determine the future course of the industry.
MarketPoint networks are made up out of a standardized 'tool kit' of economic templates or objects. These can be configured to simulate economic activities such as transportation of goods from one place to another, or transformation of raw materials into a finished product. The tool kit is flexible enough and complete enough to describe any type of industry. The most common use is in the energy industry (electricity, natural gas, crude oil, refinery products, etc), but almost any market can be simulated with the system.
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