A model-to-model analysis of Bertrand competition
Vilà, Xavier (Vilà Carnicero)

Data: 2008
Resum: This paper studies a version of the classical Bertrand model in which consumers exhibit some strategic behavior when deciding from what 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 influences 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 behavior of the process. Second, we use finite 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 first approach and still obtain the same basic results. It is suggested that the limitations of the first 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 while obtaining the same basic results.
Ajuts: Ministerio de Educación y Ciencia SEJ2005-01481
Agència de Gestió d'Ajuts Universitaris i de Recerca 2005/SGR-0712
Ministerio de Economía y Competitividad CSD2006-00016
Nota: Financial support from the Spanish Ministry of Education and Science through grant SEJ2005-01481/ECON and FEDER, SGR2005-0712 of the Direcció General de Recerca (Generalitat of Catalonia), CONSOLIDER-INGENIO 2010 (CSD2006-00016), and CREA (Barcelona Economics) are gratefully acknowledged.
Drets: Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, la comunicació pública de l'obra i la creació d'obres derivades, fins i tot amb finalitats comercials, sempre i quan es reconegui l'autoria de l'obra original. Creative Commons
Llengua: Anglès
Document: Article ; recerca ; Versió publicada
Matèria: Jocs, Teoria de ; Economia matemàtica ; Economia ; Processament de dades ; Agent-based computational economics ; Model-to-model analysis ; Evolutionary game theory ; Imperfect competition
Publicat a: JASSS, Vol. 11 Núm. 2 (2008) , p. 185-205, ISSN 1460-7425

Adreça alternativa: http://jasss.soc.surrey.ac.uk/11/2/11.html

19 p, 517.6 KB

El registre apareix a les col·leccions:
Articles > Articles de recerca
Articles > Articles publicats

 Registre creat el 2015-11-03, darrera modificació el 2023-02-21

   Favorit i Compartir