Context-Adaptive Scenario Simulation
Why a scenario should be able to change as the decision starts changing the market around it. The limitation of a static scenario Most of us have used some form of scenario analysis. Change the price. Estimate what happens to demand. Compare the outcomes. Simple enough. But there is an assumption hidden inside that approach: that the same response relationship continues to apply throughout the scenario. In the real world, that may not be true. A price increase, for example, does more than...