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Market model with heterogeneous buyers

Author

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  • Medo, Matúš
  • Zhang, Yi-Cheng

Abstract

In market modeling, one often treats buyers as a homogeneous group. In this paper we consider buyers with heterogeneous preferences and products available in many variants. Such a framework allows us to successfully model various market phenomena. In particular, we investigate how is the vendor’s behavior influenced by the amount of available information and by the presence of correlations in the system.

Suggested Citation

  • Medo, Matúš & Zhang, Yi-Cheng, 2008. "Market model with heterogeneous buyers," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 387(12), pages 2889-2908.
    • Handle: RePEc:eee:phsmap:v:387:y:2008:i:12:p:2889-2908
    DOI: 10.1016/j.physa.2008.01.008
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Tilles, Paulo F.C. & Ferreira, Fernando F. & Francisco, Gerson & Pereira, Carlos de B. & Sarti, Flavia M., 2011. "A Markovian model market—Akerlof’s lemons and the asymmetry of information," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 390(13), pages 2562-2570.
    2. Yuan, Guanghui & Han, Jingti & Zhou, Lei & Liang, Hejun & Zhang, Yicheng, 2019. "Supply and demand law under variable information," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 536(C).
    3. Devreese, J.P.A. & Lemmens, D. & Tempere, J., 2010. "Path integral approach to Asian options in the Black–Scholes model," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(4), pages 780-788.
    4. Liu, Ji & Deng, Guishi, 2009. "Link prediction in a user–object network based on time-weighted resource allocation," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 388(17), pages 3643-3650.
    5. Wen-Juan Xu & Chen-Yang Zhong & Fei Ren & Tian Qiu & Rong-Da Chen & Yun-Xin He & Li-Xin Zhong, 2020. "Evolutionary dynamics in financial markets with heterogeneities in strategies and risk tolerance," Papers 2010.08962, arXiv.org.

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