add last market related terms #256

[stap-m]

• markup a markup is an economic value that indicates a virtual amount added to an assumed or historical price to predict a price in a different context.
• markdown: a markdown is an economic value that indicates a virtual amount deducted from an assumed or historical price to predict a price in a different context.
• product: alternative term for commodity

closes #256

[litotes18]

OK, thanks!

[han-f]

markup a markup is an economic value that indicates a virtual amount added to an assumed or historical price to predict a price in a different context.

I am not sure whether this definition reads easy for me: the word prediction to me sounds like I would like to forecast something that happens in the future. I understand the markup to be an amount added to the costs incurred by a producer to determine the price at which he/she is willing to sell his/her product/commodity while at the same time making a profit.
Price = Cost + Markup
Markup (in %) = (Price - Cost)/Cost

I think I like what Wikipedia writes: Markup (or price spread) is the difference between the selling price of a good or service and cost. It is often expressed as a percentage over the cost. A markup is added into the total cost incurred by the producer of a good or service in order to cover the costs of doing business and create a profit.

What about this alternative suggestion?
markup: Markup is an economic value that indicates the difference between the price at which a commodity / service is traded and the cost that were incurred for its production / execution .

[han-f]

And related to what I wrote above:
What about this alternative suggestion for markdown?
markdown: Markdown is an economic value that indicates a downward adjustment of a price to account for agents willingness to pay.

Do both these suggestions capture what markdown and markup relate to in the modelling exercises in mind?

[litotes18]

Hi, I am not really happy with “willingness to pay” since this has a special meaning in other economic contexts. Thus, I would prefer the first proposed version. Best, Ulrich Von: Hannah ***@***.***> Gesendet: Freitag, 23. Juli 2021 11:13 An: OpenEnergyPlatform/ontology ***@***.***> Cc: Frey, Ulrich ***@***.***>; State change ***@***.***> Betreff: Re: [OpenEnergyPlatform/ontology] add last market related terms #256 (#800) And related to what I wrote above: What about this alternative suggestion for markdown? markdown: Markdown is an economic value that indicates a downward adjustment of a price to account for agents willingness to pay. Do both these suggestions capture what markdown and markup relate to in the modelling exercises in mind? — You are receiving this because you modified the open/close state. Reply to this email directly, view it on GitHub<#800 (comment)>, or unsubscribe<https://github.com/notifications/unsubscribe-auth/AJ5P3CKGYNWWPNVFSPWP2CDTZEXAPANCNFSM5AO4FQKQ>.

[han-f]

I understand your concern @litotes18, I still have difficulties with the prediction part of the first definition. Would one of these alternative read better to you?
markdown: Markdown is an economic value that indicates a downward adjustment of a price OR
markdown: Markdown is an economic value that indicates a downward adjustment of a price to motivate more demand for the corresponding commodity

[litotes18]

I would definitely prefer the first one, it is way more generic.

[han-f]

@l-emele: inviting you to this as we just talked about it. Do you have preferences, suggestions?

[l-emele]

I am by no means an economic expert, but I followed this discussion. I did not understand the original definition proposals, but the refined proposals are well understandable to me. So definitely a progress has been made. 😃

I agree to the latest definition of markup (Markup is an economic value that indicates the difference between the price at which a commodity / service is traded and the cost that were incurred for its production / execution.).

Regarding the two latest proposals on markdown: Both make sense in my view. To me, the second definition (Markdown is an economic value that indicates a downward adjustment of a price to motivate more demand for the corresponding commodity) reads as a special kind of a (general) markdown. At least an other kind of what understand as markdown came to my mind: a downward adjustment of a price to stay below some externally set price threshold. (I don't know whether that is a relevant concept here.) So a potential solution could also be to have both proposed definitions in the ontology:

• A class markdown: Markdown is an economic value that indicates a downward adjustment of a price
• A subclass xyz markdown: xyz markdown is a markdown to motivate more demand for the corresponding commodity (xyz markdown is of course only a placeholder for a proper label)

It's up to you economists to decide whether this distinction is helpful or contraproductive.

[han-f]

Thanks @l-emele, good to have you aboard too and yes, for me it makes sense to use the first refined definition of markdown too due to its being more generic.
So could we modify the origial definitions to:
markdown:Markdown is an economic value that indicates a downward adjustment of a price
markup: Markup is an economic value that indicates the difference between the price at which a commodity / service is traded and the cost that were incurred for its production / execution
?

I also like the thought about subclasses of markdown. @litotes18 - do we have a use case that requires us to implement such a subclass right away, or could we leave it at the definitions now and come back to subclasses if needed?

[litotes18]

Hi, there is no use case the requires subclasses. Best, Ulrich Von: Hannah ***@***.***> Gesendet: Mittwoch, 28. Juli 2021 15:32 An: OpenEnergyPlatform/ontology ***@***.***> Cc: Frey, Ulrich ***@***.***>; Mention ***@***.***> Betreff: Re: [OpenEnergyPlatform/ontology] add last market related terms #256 (#800) Thanks @l-emele<https://github.com/l-emele>, good to have you aboard too and yes, for me it makes sense to use the first refined definition of markdown too due to its being more generic. So could we modify the origial definitions to: markdown:Markdown is an economic value that indicates a downward adjustment of a price markup: Markup is an economic value that indicates the difference between the price at which a commodity / service is traded and the cost that were incurred for its production / execution ? I also like the thought about subclasses of markdown. @litotes18<https://github.com/litotes18> - do we have a use case that requires us to implement such a subclass right away, or could we leave it at the definitions now and come back to subclasses if needed? — You are receiving this because you were mentioned. Reply to this email directly, view it on GitHub<#800 (comment)>, or unsubscribe<https://github.com/notifications/unsubscribe-auth/AJ5P3CMLJJRCIRKL7A4FWILT2ABD5ANCNFSM5AO4FQKQ>.