The emergence of knowledge exchange: an agent-based model of a software market
AbstractWe investigate knowledge exchange among commercial organisations, the rationale behind it and its effects on the market. Knowledge exchange is known to be beneficial for industry, but in order to explain it, authors have used high level concepts like network effects, reputation and trust. We attempt to formalise a plausible and elegant explanation of how and why companies adopt information exchange and why it benefits the market as a whole when this happens. This explanation is based on a multi-agent model that simulates a market of software providers. Even though the model does not include any high-level concepts, information exchange naturally emerges during simulations as a successful profitable behaviour. The conclusions reached by this agent-based analysis are twofold: (1) A straightforward set of assumptions is enough to give rise to exchange in a software market. (2) Knowledge exchange is shown to increase the efficiency of the market
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 InfoPaper provided by Society for Computational Economics in its series Computing in Economics and Finance 2006 with number 361.
Date of creation: 04 Jul 2006
Date of revision:
Agent-based Computational Economics; adaptive behaviour; knowledge sharing; market efficiency;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-07-15 (All new papers)
- NEP-CMP-2006-07-15 (Computational Economics)
- NEP-FMK-2006-07-15 (Financial Markets)
- NEP-NET-2006-07-15 (Network Economics)
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.:
- Kirman, Alan P. & Vriend, Nicolaas J., 2001. "Evolving market structure: An ACE model of price dispersion and loyalty," Journal of Economic Dynamics and Control, Elsevier, vol. 25(3-4), pages 459-502, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If references are entirely missing, you can add them using this form.