Code Implementation
Examples
The Arbite Code Library
The Structural Logic of Business At Arbite, we believe that insights are a byproduct of mathematical precision. The following code modules serve as a live "laboratory"—a transparent window into the Business by Numbers Protocol v3.0 logic that powers our diagnostics.
Rather than relying on narrative-driven assumptions, these tools demonstrate how we isolate commercial variables, develop advanced algorithms, and apply the Business by Numbers (BBN) determinants to solve complex market problems. This is not just a demonstration; it is the architectural foundation of your business, quantified.
What is XED?
Cross-Price Elasticity of Demand (XED) is a critical economic metric used to measure how the quantity demanded of one product
(Product A) changes in response to a price change in another product (Product B).
In our framework, XED is a key tool for identifying Market Dependency. It allows us to move beyond simple competition analysis and actually quantify whether your product is a Substitute (at risk of customer churn) or a Complement (primed for strategic bundling).
Where it fits in Business Analytics
XED is the "early warning system" of the BBN Determinants. It is used for:
Applications.
Competitor Threat Assessment: Predicting exactly how much volume you will lose if a rival cuts their price.
Portfolio Synergy: Understanding how a price increase in one of your services might accidentally damage the sales of another.
Market Positioning: Determining if your product is viewed as a unique "Island" or merely a generic alternative.
User Instructions
Select Industry Coefficient: Choose the benchmark that most closely aligns with your sector. This sets the sensitivity of the "Arbite Engine."
Adjust Price B: Use the slider to simulate a price change in a competitor's product or a related internal service.
Adjust Demand A: Use the slider to input the observed (or predicted) shift in your own sales volume.
Read the Compass: The Decision Compass will instantly initialize. If the needle points toward the North (Substitutes), your strategy must focus on differentiation. If it points South (Complements), your strategy should focus on integration and ecosystem growth.