THE LOBSTER TAIL

Study on CLD and System Dynamics Model

Group 6
Ayush Dharnidharka 2018PGP011
Shashank Gontia 2018PGP048
Rupali Bajpai 2018PGP039
Shubhi Jhalani 2018PGP109
Dwarampudi Siva Hemanth Reddy 2018PGP015
Vinti Singla 2018PGP057
Introduction
The Lobster Tale” is a story about a hypothetical lobster industry, how it begins, and
how it evolves. Along the way, it explores issues related to fundamental economic
assumptions, the tragedy of the commons, affirmative action, and globalization. Its
objectives are to encourage students to (a) challenge beliefs and commonly held
truths, (b) identify and examine often unspoken assumptions, (c) consider alternative
explanations, and (d) integrate areas of thought across disciplines (e.g., business,
economics, and philosophy). For “The Lobster Tale,” critical thinking is defined in
the essential theory sense, which encourages readers to “grasp the assumptions of a
power-induced, politically sustained, socially constructed world” (Frost, 1997, p.
361). It involves “questioning assumptions, identifying the conflict of power and
interest” and “relating one’s experience to the wider social, institutional and political
context.”

Objective
1) Developing a Causal Loop Diagram
2) Creating a system dynamics model
3) Ensuring wealth creation among the fishing community through ideation
4) Providing the reduction of income disparity through suggestions

Methodology
Using Vensim software, the above case will be illustrated along with the
development of relationships between different variables and analysis of the
simulation runs

1|Page Group 6
Step 1: Creating the causal loop diagram
PART 1& 2 :
Following variables are created
a) Fishing Industry
b) Fish (Demand)
c) Lobster (Demand)
d) Meat and Grain
e) Marketing Campaign
f) Price
g) Profit
h) Cost
i) Lobster Population
j) Harvesting
k) Per Unit Cost
There will be the following loops made from the above-mentioned variables:
a) Reinforcing loop:
There will be two variables i.e. fishing industry and the meat & grain industry in this
loop which will have negative relationship between them (denoted by letter O).
This will identify how the consumer shift their preference between fish and other
products and the impact it had on the fishing industry’s income.
b) Balancing loop: This will include the variables surrounding the profit variable,
such as marketing cost, cost of catching lobster, lobster population, rate of
harvesting and price of lobster. This depicts the complex factors which affects
the prices and in turn the overall profit of the industry

2|Page Group 6
PART 3 & 4 :
Variables used
1. Lobster population
2. Unfair means
3. Quota System
4. Prosperity of farmers
5. Fragmentation of society
6. Emancipation of minorities

Relationship between variables:

1. Decline in Lobster population --> (s) Cheating -> (s) Quota System -->
Increase in Lobster population (Balancing loop)
Increase in Lobster Population -> (s) Prosperity of farmers -> (s) Consolidation
of power  (s) Quota System (Reinforcing loop)
2. Quota System --> (s) fragmentation of society (s) Emancipation of
minorities and women (Balancing loop) (o) Consolidation of power 
Quota System (Reinforcing loop)

3|Page Group 6