| dc.creator |
Vilà, Xavier |
|
| dc.date |
2007-10-31T14:31:56Z |
|
| dc.date |
2007-10-31T14:31:56Z |
|
| dc.date |
2005-10-25 |
|
| dc.date.accessioned |
2017-01-31T00:57:50Z |
|
| dc.date.available |
2017-01-31T00:57:50Z |
|
| dc.identifier |
http://hdl.handle.net/10261/1770 |
|
| dc.identifier.uri |
http://dspace.mediu.edu.my:8181/xmlui/handle/10261/1770 |
|
| dc.description |
We analyze the classical Bertrand model when consumers exhibit some strategic behavior in deciding from which seller they will buy. We use two related but different tools. Both consider a probabilistic learning (or evolutionary) mechanism, and in the two of them consumers' behavior in uences the competition between the sellers. The results obtained show that, in general, developing some sort of loyalty is a good strategy for the buyers as it works in their best interest. First, we consider a learning procedure described by a deterministic dynamic system and, using strong simplifying assumptions, we can produce a description of the process behavior. Second, we use nite automata to represent the strategies played by the agents and an adaptive process based on genetic algorithms to simulate the stochastic process of learning. By doing so we can relax some of the strong assumptions used in the rst approach and still obtain the same basic results. It is suggested that the limitations of the rst approach (analytical) provide a good motivation for the second approach (Agent-Based). Indeed, although both approaches address the same problem, the use of Agent-Based computational techniques allows us to relax hypothesis and overcome the limitations of the analytical approach. |
|
| dc.description |
Financial support from grants BEC2002-02130 of the Dirección General de Investigación (Spanish Ministry of Science and Technology), SGR2001-0164 of the Direcció General de Recerca (Generalitat of
Catalonia), and CREA (Barcelona Economics) are gratefully acknowledged. |
|
| dc.language |
eng |
|
| dc.relation |
UFAE and IAE Working Papers |
|
| dc.relation |
654.05 |
|
| dc.rights |
openAccess |
|
| dc.subject |
agent-Based Computational Economics |
|
| dc.subject |
Evolutionary Game Theory |
|
| dc.subject |
Imperfect competition |
|
| dc.title |
Consumers' Behavior and the Bertrand Paradox: An ACE approach |
|
| dc.type |
Documento de trabajo |
|