This information can then be used in context with the modelling process. The alternative method to Game Theory is Dynamic Systems Modelling. This method therefore fits the requirements of this project, as the model of an economic interaction, or of the effect of one industry on another, or of the effect of introducing a new technology into a particular industry, will all be dynamic. Dynamic means that something is constantly changing, never stationary. A system is any group of things that affect each other and is determined by their relationships.
All systems have three elements in common - stock, flow and control.
It is fairly obvious that an economic environment of companies, technology and sales can be considered as a system. A model is a usually simplified representation of a real situation. It can be physical, imaginary or mathematical. This project will mainly involve mathematical models which can then be programmed into a computer as a piece of software. Putting all this together, Dynamic Systems Modelling is the creation of a representation of a group of things and their relationships in order to study the changes in those things and their relationships over time.