unit demand equations for business games

Product unit demand is determined by many factors in business simulations; among these are the market-ing variables of price, place, promotion, and quality. In the actual marketplace, however, these variables are not independent as is assumed by many simulation algorithms in the literature. This article discusses the need for and development of a two-attribute multiple-market-segment industry-level unit demand equa-tion that explicitly includes the correlation between the two variables that affect demand (price and pro-motion) that form the domain of the unit demand equation for the model described in this article