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A mathematical model for consumers based on aspiration adaptation theory and bounded rationality

Author

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  • Nicolas Marciales Parra

    (Santo Tomas University, Colombia)

Abstract

This 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.

Suggested Citation

  • Nicolas Marciales Parra, 2013. "A mathematical model for consumers based on aspiration adaptation theory and bounded rationality," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 5(1), pages 136-143, June.
    • Handle: RePEc:rse:wpaper:v:5:y:2013:i:1:p:136-143
    as

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    References listed on IDEAS

    as
    1. Pingle, Mark, 1995. "Imitation versus rationality: An experimental perspective on decision making," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 24(2), pages 281-315.
    2. Schuster, Stephan, 2009. "An Algorithm for the Simulation of Bounded Rational Agents," MPRA Paper 15942, University Library of Munich, Germany.
    3. Gerd Gigerenzer & Reinhard Selten (ed.), 2002. "Bounded Rationality: The Adaptive Toolbox," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262571641, December.
    4. Herbert A. Simon & Massimo Egidi & Ricardo Viale & Robin Marris, 1992. "Economics, Bounded Rationality and the Cognitive Revolution," Books, Edward Elgar Publishing, number 409.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    aspiration adaptation theory; bounded rationality; imitation; consumer's theory;
    All these keywords.

    JEL classification:

    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: 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

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