A model is a reduction. It extracts only those elements of a more complex reality which are necessary to reveal the underlying relationships. Stachowiak (1973) characterizes models: (i) to represent an original, (ii) to simplify that original in such way that only the relevant parts are shown, and (iii) to be pragmatic in the sense that simplifications are made, regarding the intentions a user has applying the model in a given time period.
KeywordsDistribution System Private Actor Agent Layer Structural Decision Retail Market
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