IDEAS home Printed from https://ideas.repec.org/a/eee/phsmap/v387y2008i12p2889-2908.html
   My bibliography  Save this article

Market model with heterogeneous buyers

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0378437108000289
    Download Restriction: Full text for ScienceDirect subscribers only. Journal offers the option of making the article available online on Science direct for a fee of $3,000
    File URL: https://libkey.io/10.1016/j.physa.2008.01.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lage-Castellanos, Alejandro & Mulet, Roberto, 2006. "The marriage problem: From the bar of appointments to the agency," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 364(C), pages 389-402.
    2. Challet, Damien & Marsili, Matteo & Zhang, Yi-Cheng, 2013. "Minority Games: Interacting agents in financial markets," OUP Catalogue, Oxford University Press, number 9780199686698, Decembrie.
    3. Joseph E. Stiglitz, 2002. "Information and the Change in the Paradigm in Economics," American Economic Review, American Economic Association, vol. 92(3), pages 460-501, June.
    4. Zhang, Yi-Cheng, 2001. "Happier world with more information," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 299(1), pages 104-120.
    5. J. Yannis Bakos, 1997. "Reducing Buyer Search Costs: Implications for Electronic Marketplaces," Management Science, INFORMS, vol. 43(12), pages 1676-1692, December.
    6. Zhang, Yi-Cheng, 2005. "Supply and demand law under limited information," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 350(2), pages 500-532.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liao, Hao & Xiao, Rui & Chen, Duanbing & Medo, Matúš & Zhang, Yi-Cheng, 2014. "Firm competition in a probabilistic framework of consumer choice," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 400(C), pages 47-56.
    2. 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.
    3. Fenoaltea, Enrico Maria & Baybusinov, Izat B. & Na, Xu & Zhang, Yi-Cheng, 2022. "A local interaction dynamic for the matching problem," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 604(C).
    4. Gao, Fujuan & Fenoaltea, Enrico Maria & Zhang, Yi-Cheng, 2023. "Market failure in a new model of platform design with partially informed consumers," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 619(C).
    5. Anindya S. Chakrabarti & Diptesh Ghosh, 2019. "Emergence of anti-coordination through reinforcement learning in generalized minority games," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 14(2), pages 225-245, June.
    6. Edgardo Arturo Ayala Gaytán, 2009. "Social network externalities and price dispersion in online markets," Ensayos Revista de Economia, Universidad Autonoma de Nuevo Leon, Facultad de Economia, vol. 0(2), pages 1-28, November.
    7. Catherine Locatelli & Sylvain Rossiaud, 2011. "A neoinstitutionalist interpretation of the changes in the Russian oil model," Post-Print halshs-00631115, HAL.
    8. Alexandre de Corniere, 2013. "Search Advertising," Economics Series Working Papers 649, University of Oxford, Department of Economics.
    9. Thore, Sten, 2022. "Sustainable development goal deficits and the Covid 19 pandemic," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    10. Jing Wang & Jay In Oh, 2023. "Factors Influencing Consumers’ Continuous Purchase Intentions on TikTok: An Examination from the Uses and Gratifications (U&G) Theory Perspective," Sustainability, MDPI, vol. 15(13), pages 1-19, June.
    11. Ting Li & Robert J. Kauffman & Eric van Heck & Peter Vervest & Benedict G. C. Dellaert, 2014. "Consumer Informedness and Firm Information Strategy," Information Systems Research, INFORMS, vol. 25(2), pages 345-363, June.
    12. Anna Fielder & Riina Vuorikari & Nuria Rodriguez-Priego & Yves Punie, 2016. "Background Review for Developing the Digital Competence Framework for Consumers: A snapshot of hot-button issues and recent literature," JRC Research Reports JRC103332, Joint Research Centre.
    13. Jang, Moonkyoung & Baek, Hyunmi & Kim, Seongcheol, 2021. "Movie characteristics as determinants of download-to-own performance in the Korean video-on-demand market," Telecommunications Policy, Elsevier, vol. 45(7).
    14. Childers, Terry L. & Kaufman-Scarborough, Carol, 2009. "Expanding opportunities for online shoppers with disabilities," Journal of Business Research, Elsevier, vol. 62(5), pages 572-578, May.
    15. Li, Chen & Swaminathan, Srinivasan & Kim, Junhee, 2021. "The role of marketing channels in consumers’ promotional point redemption decisions," Journal of Business Research, Elsevier, vol. 125(C), pages 314-323.
    16. Benjamin Patrick Evans & Mikhail Prokopenko, 2021. "Bounded rationality for relaxing best response and mutual consistency: The Quantal Hierarchy model of decision-making," Papers 2106.15844, arXiv.org, revised Mar 2023.
    17. Ross Niswanger & Eric Walden, 2022. "Quantity bias in comparison-shopping of multi-item baskets," PLOS ONE, Public Library of Science, vol. 17(2), pages 1-19, February.
    18. Grewal, Dhruv & Iyer, Gopalkrishnan R. & Krishnan, R. & Sharma, Arun, 2003. "The Internet and the price-value-loyalty chain," Journal of Business Research, Elsevier, vol. 56(5), pages 391-398, May.
    19. Yan, Ruiliang & Ghose, Sanjoy, 2010. "Forecast information and traditional retailer performance in a dual-channel competitive market," Journal of Business Research, Elsevier, vol. 63(1), pages 77-83, January.
    20. Luis Garicano & Richard A. Posner, 2005. "Intelligence Failures: An Organizational Economics Perspective," Journal of Economic Perspectives, American Economic Association, vol. 19(4), pages 151-170, Fall.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:phsmap:v:387:y:2008:i:12:p:2889-2908. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/physica-a-statistical-mechpplications/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.