Dynamics of brand competition: Effects of unobserved social networks
AbstractBrand competition is modelled using an agent based approach in order to examine the long run dynamics of market structure and brand characteristics. A repeated game is designed where myopic firms choose strategies based on beliefs about their rivals and consumers. Consumers are heterogeneous and can observe neighbour behaviour through social networks. Although firms do not observe them, the social networks have a significant impact on the emerging market structure. Presence of networks tends to polarize market share and leads to higher volatility in brands. Yet convergence in brand characteristics usually happens whenever the market reaches a steady state. Scale-free networks accentuate the polarization and volatility more than small world or random networks. Unilateral innovations are less frequent under social networks.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Dynamics and Control.
Volume (Year): 34 (2010)
Issue (Month): 12 (December)
Contact details of provider:
Web page: http://www.elsevier.com/locate/jedc
Dynamic oligopoly Evolutionary game Social network;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- ANDERSON, S. & de PALMA, A. & THISSE, J.-F., 1986.
"A representative consumer theory of the logit model,"
CORE Discussion Papers
1986043, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Anderson, Simon Peter & de Palma, Andre & Thisse, Jacques-Francois, 1988. "A Representative Consumer Theory of the Logit Model," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 29(3), pages 461-66, August.
- ANDERSON, Simon & de PALMA, André & THISSE, Jacques-François, . "A representative consumer theory of the logit model," CORE Discussion Papers RP -805, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Cowan, Robin & Jonard, Nicolas, 2004.
"Network structure and the diffusion of knowledge,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 28(8), pages 1557-1575, June.
- Jean-Pierre Dubé & Puneet Manchanda, 2005. "Differences in Dynamic Brand Competition Across Markets: An Empirical Analysis," Marketing Science, INFORMS, vol. 24(1), pages 81-95, September.
- Dunia López-Pintado, 2006. "Contagion and coordination in random networks," International Journal of Game Theory, Springer, vol. 34(3), pages 371-381, October.
- Battiston, Stefano & Delli Gatti, Domenico & Gallegati, Mauro & Greenwald, Bruce & Stiglitz, Joseph E., 2007. "Credit chains and bankruptcy propagation in production networks," Journal of Economic Dynamics and Control, Elsevier, vol. 31(6), pages 2061-2084, June.
- Pradeep Dubey & Rahul Garg & Bernard De Meyer, 2006.
"Competing for Customers in a Social Network,"
321307000000000685, UCLA Department of Economics.
- Pradeep Dubey & Rahul Garg & Bernard De Meyer, 2006. "Competing for Customers in a Social Network," Department of Economics Working Papers 06-01, Stony Brook University, Department of Economics.
- Pradeep Dubey & Rahul Garg & Bernard De Meyer, 2006. "Competing for Customers in a Social Network," Cowles Foundation Discussion Papers 1591, Cowles Foundation for Research in Economics, Yale University.
- Fontaine Francois, 2004.
"Why are similar workers paid differently? The role of social networks,"
Labor and Demography
0408014, EconWPA, revised 09 Sep 2004.
- Fontaine, François, 2008. "Why are similar workers paid differently? the role of social networks," Journal of Economic Dynamics and Control, Elsevier, vol. 32(12), pages 3960-3977, December.
- Fontaine, Francois, 2005. "Why Are Similar Workers Paid Differently? The Role of Social Networks," IZA Discussion Papers 1786, Institute for the Study of Labor (IZA).
- Francois Fontaine, 2004. "Why are similar workers paid differently? The role of social networks," 2004 Meeting Papers 493, Society for Economic Dynamics.
- Alfarano, Simone & Milakovic, Mishael, 2009. "Network structure and N-dependence in agent-based herding models," Journal of Economic Dynamics and Control, Elsevier, vol. 33(1), pages 78-92, January.
- Gilbert, Nigel & Jager, Wander & Deffuant, Guillaume & Adjali, Iqbal, 2007. "Complexities in markets: Introduction to the special issue," Journal of Business Research, Elsevier, vol. 60(8), pages 813-815, August.
- Jager, Wander, 2007. "The four P's in social simulation, a perspective on how marketing could benefit from the use of social simulation," Journal of Business Research, Elsevier, vol. 60(8), pages 868-875, August.
- Mark Granovetter, 2005. "The Impact of Social Structure on Economic Outcomes," Journal of Economic Perspectives, American Economic Association, vol. 19(1), pages 33-50, Winter.
- Kirman, Alan & Markose, Sheri & Giansante, Simone & Pin, Paolo, 2007.
"Marginal contribution, reciprocity and equity in segregated groups: Bounded rationality and self-organization in social networks,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 31(6), pages 2085-2107, June.
- Alan Kirman & Sheri Markose & Simone Giasante & Paolo Pin, 2007. "Marginal contribution, reciprocity and equity in segregated groups: Bounded rationality and self-organization in social networks," Economics Discussion Papers 629, University of Essex, Department of Economics.
- Nier, Erlend & Yang, Jing & Yorulmazer, Tanju & Alentorn, Amadeo, 2008.
"Network models and financial stability,"
Bank of England working papers
346, Bank of England.
- Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.