Abstract for: Market Analysis Using System Dynamics: Focusing on the Stone Industry Iranian marble

The processed marble industry plays an important role in construction and resource-based economies, yet it faces persistent challenges including high production costs, limited competitiveness, and policy distortions.Understanding the dynamic interactions among pricing, production, and demand is essential for developing sustainable strategies in complex and policy-sensitive mining-related markets. This study develops a system dynamics model integrating pricing, production, and demand subsystems. Using Vensim simulation, feedback loops, nonlinear relationships, and delays are modeled. Scenario analysis evaluates policy alternatives, including capacity expansion,cost reduction,import liberalization, and price control strategies. Simulation results indicate that high marginal production costs are the primary constraint on international competitiveness. Increasing production capacity without demand growth fails to improve industry performance. Scenario analysis shows that production-line optimization and cost reduction significantly enhance revenue, stability, and long-term competitiveness compared to interventionist pricing or expansion policies. Findings highlight that demand growth is largely external and beyond manufacturers’ control. Therefore, internal efficiency improvement is crucial. Policies focused on reducing marginal costs create sustainable advantages, whereas import liberalization or price controls risk industry decline. Strategic optimization strengthens resilience and improves competitiveness in resource-based industrial markets.