Patent ID: 7725376

Claim:
An apparatus comprising: a processor configured to define a plurality of independent component markets for a good, wherein for each of the component markets, the processor being configured to define the component market includes being configured to: determine a price sensitivity probability distribution of a price per unit of the good, the price sensitivity probability distribution assigning a respective probability to each of a plurality of different predetermined prices per unit of the good, the price sensitivity probability distribution reflecting an uncertainty in the price per unit of the good, and determine a market potential probability distribution of a number of units of the good in the component market, the market potential probability distribution assigning a respective probability to each of a plurality of different numbers of units of the good, the market potential probability distribution reflecting an uncertainty in the number of units of the good in the component market, wherein the processor is also configured to generate a model of at least one of demand or supply for the good in an aggregate market formed of the component markets, the processor being configured to generate the model of at least one of demand or supply for the good in the aggregate market from the price sensitivity probability distributions and market potential probability distributions of the component markets, wherein a model of demand reflects a dependence between a quantity of the good demanded by consumers and a price per unit of the good in the aggregate market, and a model of supply reflects a dependence between a quantity of the good supplied to consumers and a price per unit of the good in the aggregate market.