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Application Packs for the Rapid Recursive® Toolbox substantially extend the capabilities of users to tackle industry-specific decision problems. Application Packs transform the Rapid Recursive® Toolbox from a broad platform for solving any sequential decision problem to a narrow, deeply-focused tool for analyzing important sequential decision problems in specific industries.

 

Available Application Packs

Application Packs in Development

Marketing Strategy and Customer Life-time Value Brand management
Inventory Management Dynamic pricing and Revenue Management
Policy Risk Private Equity and Venture Capital Valuations
Theoretical Economics Country Risk and Threat Evaluation
Military Targeting

 
 


 

Available Application Packs

Marketing Strategy and Customer Life-Time Value

Many medium- and large-sized retailers are inundated with individual-level customer data describing purchasing behavior and responses to marketing programs. Traditional models of measuring customer lifetime value require a number of limiting assumptions that diverge from reality. Our recursive model more accurately models customer behavior by allowing for customers to move between segments and respond differently to different marketing programs, which leads to better strategy decisions. Marketers will avoid unnecessary expenses and maximize the value of their marketing spend.

Please contact us at sales@supportedintelligence.com or (517) 333-7024 to learn more about pricing and to request your copy. Please note, all Application Packs require an active license to the Rapid Recursive® Toolbox, available here.

 

Inventory Management

Any company with an inventory of goods to sell faces the problem of determining the best time to restock their shelves and when to order additional units. Standard models for evaluating this decision lead to decent decision rules, but they are not dynamic enough to produce true value-maximizing behavior. Our recursive model in this area allows for changing levels of expected demand, different levels of inventory remaining, and state-based ordering policies rather than a single ordering rule.

Please contact us at sales@supportedintelligence.com or (517) 333-7024 to learn more about pricing and to request your copy. Please note, all Application Packs require an active license to the Rapid Recursive® Toolbox, available here.

 

Policy Risk

Employers routinely make decisions involving uncertainty around the costs of compliance with both enacted and proposed government policies. This application pack provides a template and set of utilities that allow users to analyze an employer’s hiring decisions in light of this type of uncertainty regarding employment costs. In addition to powerful recursive analysis, this application pack also offers the ability to examine policy costs as they would impact employer income statements, rather than in another, less direct manner.

The model in this Application Pack is based on the model used to analyze the impacts of the Affordable Care Act in “Persistent Unemployment and Policy Uncertainty,” by Patrick L. Anderson (Business Economics, January 2014).

Please contact us at sales@supportedintelligence.com or (517) 333-7024 to learn more about pricing and to request your copy. Please note, all Application Packs require an active license to the Rapid Recursive® Toolbox, available here.

 

Theoretical Economics

This application pack includes the five classic models from economics discussed in the technical paper “Microeconomic Applications of the Rapid Recursive® Toolbox” by Jeff Johnson. These are:

  1. A model of household saving according to employment status and asset holdings.
  2. A simple model of job search.
  3. A model of job search with firing and job loss risk.
  4. A model of an employee’s work versus leisure decision.
  5. A model of firm investment given production capabilities and market prices.

In this application pack, we provide practical parameterizations and numerical results for each model to help users bridge the gap between theory and practice. We also include a nicely-formatted, published version of each template to demonstrate the ease with which the Rapid Recursive® Toolbox can produce the solution to a homework question, a first draft of a working paper, or excerpted lecture notes.

The above models are based on parts of Recursive Macroeconomic Theory (Ljungqvist and Sargent, MIT Press, 2000), Recursive Methods in Economic Dynamics (Stokey and Lucas, Harvard University Press, 1989), and Professor Guido Lorenzoni’s class “Dynamic Optimization Methods with Applications” on the MIT OpenCourseWare website.

Please contact us at sales@supportedintelligence.com or (517) 333-7024 to learn more about pricing and to request your copy. Please note, all Application Packs require an active license to the Rapid Recursive® Toolbox, available here.

 

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Application Packs In Development

Brand Management

Many brands face declining name recognition or brand power. Often, brand owners will attempt to combat this through periodic re-branding of the product or company. We see this frequently in the restaurant industry when a location will suddenly change brands without changing owners. This is not an easy or quick decision. An application in this area would help determine the optimal time to re-brand based on brand status and expectations of the future.

Please contact us at sales@supportedintelligence.com or (517) 333-7024 to learn more about pricing and to request your copy. Please note, all Application Packs require an active license to the Rapid Recursive® Toolbox, available here.

 

Dynamic Pricing and Revenue Management

Many industries and companies today operate with fixed, finite inventories and constantly changing demand. Because companies cannot easily control quantity, they adapt their prices to maximize revenue. Continuous increases in the amount of information available regarding customer behavior and likely demand present a unique opportunity for companies that adopt dynamic pricing strategies. The airline and hospitality industries serve as prime examples of this, where the price of an airline ticket or hotel room changes, sometimes drastically, based on a number of different factors at the time of sale. An application in this are would help in setting optimal prices based on current knowledge and expectations of the future.

Please contact us at sales@supportedintelligence.com or (517) 333-7024 to learn more about pricing and to request your copy. Please note, all Application Packs require an active license to the Rapid Recursive® Toolbox, available here.

 

Private Equity and Venture Capital Valuations

Investment funds in the private equity and venture capital fields routinely face difficult valuation questions for startup or distressed companies. Traditional valuation methods often fail in these cases because they cannot account for managerial flexibility or real options and they consider only a very limited number of possible outcomes. Recursive methods are naturally suited for the common state based valuation problems in these fields, where an investor must value a company today based on his/her current knowledge and assessment of the company’s future.

Please contact us at sales@supportedintelligence.com or (517) 333-7024 to learn more about pricing and to request your copy. Please note, all Application Packs require an active license to the Rapid Recursive® Toolbox, available here.

 

Country Risk and Threat Evaluation

In today’s uncertain political climate, there are a number of important risks that must be considered. A recursive model could be quite useful in analyzing unstable political regimes, evaluating terrorist threats, or investigating the risks associated with important buildings. An application in this field would help in determining and mitigating asset or regime related risks based on information available to the decision maker. 

Please contact us at sales@supportedintelligence.com or (517) 333-7024 to learn more about pricing and to request your copy. Please note, all Application Packs require an active license to the Rapid Recursive® Toolbox, available here.

 

Military Targeting

An important and complex problem in military decision-making is where to look for a moving target. This problem has been researched by the US Navy since at least the 1980s. Recursive models are well-suited for problems of this type given their ability to account for new information and provide actionable decision advice for each possible state. An application in this area would help military personnel look for moving targets based on their continuously changing movements.

Please contact us at sales@supportedintelligence.com or (517) 333-7024 to learn more about pricing and to request your copy. Please note, all Application Packs require an active license to the Rapid Recursive® Toolbox, available here.

 

Customization and New Application Pack Development

Interested in having us customize an Application Pack and/or develop a new one to fit your specific company and industry? Please visit our Customization Services page for more information.

 

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