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An Agent Based Model of Switching: The Case of Boulogne S/mer Fish Market

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The question of efficiency of market organization is an important one in economics. When theoretical results suggest the dominance of auctions, empirical studies present more mitigated results putting forward that the global efficiency depends on agents' characteristics and market environment. The Boulogne s/mer fish market is organized in a particular way. Both buyers and sellers can daily choose to exchange through an auction mechanism or through a negotiated one. First empirical results reveal that, at a macro level, this organization is a stable one: the negative price- quantity relation is verified, suggesting a global rationality, even if this relation is not verified for all the individuals. At a micro-level, empirical evidence points out that the agents purchase most of the time on one same market (auctions or negotiated) and this market corresponds to the best choice for them, in terms of prices and quantities sold. A second result then suggests that the performance of a mode of organization depends on the characteristics of the traders and on the features of the good sold. Empirical study also reveals that most of the agents regularly switch from one market to the other. To understand the reasons for this switching, we consider this market as a complex system and simulate an agent based model where limited rational individuals are endowed with simple learning rules (noisy or myopic strategies). The auction sub-market plays a benchmark role, the only strategic possibility for sellers is to decide to go (or not) on the negotiated sub-market. A third result is that macro stability results from the aggregate behaviour of limited rational individuals and this, without any need of central coordinator. A fourth result is that agents daily choose their sub-market according to the global quantities sold on the whole market.

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  • Sylvain Mignot & Gabriele Tedeschi & Annick Vignes, 2012. "An Agent Based Model of Switching: The Case of Boulogne S/mer Fish Market," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 15(2), pages 1-3.
    • Handle: RePEc:jas:jasssj:2011-42-2
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    1. Sylvain Mignot & Stéphanie Saba & Annick Vignes, 2016. "To trust or to bid: an empirical analysis of social relationships on a fish market," Working Papers halshs-01298872, HAL.
    2. Sylvain Mignot & Annick Vignes, 2022. "Network structures of a centralized and a decentralized market. A direct comparison," Post-Print hal-03801324, HAL.
    3. Wolff, François-Charles & Asche, Frank, 2022. "Pricing heterogeneity and transaction mode: Evidence from the French fish market," Journal of Economic Behavior & Organization, Elsevier, vol. 203(C), pages 67-79.
    4. Sylvain Mignot & Annick Vignes, 2019. "Trust somebody but choose carefully : an empirical analysis of social relationships on an exchange market," Working Papers hal-02005026, HAL.
    5. Laura Hernández & Annick Vignes & Stéphanie Saba, 2018. "Trust or robustness? An ecological approach to the study of auction and bilateral markets," PLOS ONE, Public Library of Science, vol. 13(5), pages 1-14, May.
    6. Laura Hernandez & Annick Vignes & Stéphanie Saba, 2018. "Trust or robustness? An ecological approach to the study of auction and bilateral markets," Post-Print hal-02005040, HAL.

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