Abstract for: A System Dynamics Model for Analyzing the Effects of Government Policies: A Case Study of Iran's Cell Phone Market

In 2005 Mr. Mahmoud Ahmadinezhad won the presidential election campaign and became the new president of Iran. He desired to change deeply most of the usual social and economical rules and policies in Iran’s society. For example, he decided to change the rate of tariff in many kinds of products such as cell phones. Since he has wanted to make Iran an independent country in producing cell phone and also to create some job opportunity, he increased the rate of tariff for imported cell phones and at the other hand many contracts was established with cell phone companies to achieve the high technology of producing or assembling cell phone. So a huge investment was done to make the first Iranian National cell phone. But the cell phone market was shocked by this hasty decision and little by little all of the cell phones in the market were became contraband. In this research we are going to analyze the effect of changing the rate of imported cell phone and also we explain some policies for setting the rate of tariff.