Importance of Simulation

Research on any field can be taken up in several ways, majorly theoretical and empirical. Considering the nature of applicability, empirical research works are always more preferred by the practitioners. However, devoid of any theoretical foundation, any empirical research work can never be carried out, and that is where the importance of theoretical research works comes into picture. This kind of research works are always appreciated among the large community of academicians, as based on the ground prepared by this theoretical foundation, empirical studies are conducted across several contexts. Consequently, theoretical studies are always hard and critical to be conducted, as in most of the cases researchers do not have the real world data, while conducting those studies. As a result, simulations turn out to be handy in these kinds of scenarios.

A theoretical study consists of an extensive set of parameters and conditional assumptions, which can be replicated into real world scenarios. It may be possible that all of those parameters are not required for all the scenarios, but keeping the boundary conditions in mind, an inclusive set of parameters and conditions are considered. For the parameters like willingness to pay, factor of differentiation, optimism and pessimism etc, it is nearly impossible for an individual to collect the data and conduct the study. In this kind of situation, conducting simulations based on several combinations of parameters and conditions can demonstrate the working of the theoretical model, the results of which can be approximated to the outcome if applied in the real world. It assists the researchers in testing and validating the scope and working of the model, devoid of which formulation of the theoretical model is not complete. MATLAB is one of the finest softwares for undertaking simulation based studies. For more information about conducting simulation for a theoretical model, kindly browse through the pages of

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