A mathematical model for consumers based on aspiration adaptation theory and bounded rationality
AbstractThis paper describes characteristics of a discrete - time model for a consumers group through bounded rationality theory, where the basis of decision-making is the Aspiration Adaptation Theory (Selten, 1998). Each consumer try to imitate the decision of others related to them based in last time period observation, as long as they are connected by no directed and no weight graph. The models consist of some algorithms for imitation process, income raise through education and the extreme cases. Finally, the paper shows conclusions and extensions.
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Bibliographic InfoArticle provided by Pro Global Science Association in its journal Published in Review of Applied Socio-Economic Research.
Volume (Year): 5 (2013)
Issue (Month): 1 (June)
aspiration adaptation theory; bounded rationality; imitation; consumer's theory;
Find related papers by JEL classification:
- C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
- D03 - Microeconomics - - General - - - Behavioral Economics; Underlying Principles
- D71 - Microeconomics - - Analysis of Collective Decision-Making - - - Social Choice; Clubs; Committees; Associations
- D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
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.:
- Schuster, Stephan, 2009. "An Algorithm for the Simulation of Bounded Rational Agents," MPRA Paper 15942, University Library of Munich, Germany.
- Pingle, Mark, 1995. "Imitation versus rationality: An experimental perspective on decision making," The Journal of Socio-Economics, Elsevier, vol. 24(2), pages 281-315.
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