The Interest of Having Loyal Buyers in a Perishable Market
The aim of this paper is to show the particular role of buyer loyalty in a perishable goods market. For this we build an agent-based model, inspired by a wholesale market on which we had performed some qualitative field study. In this model we define a very simple negotiation procedure for wholesalers and retailers, who are divided in two populations: loyal retailers who always visit the same seller first and opportunistic retailers who look for the best prices. In this setting, the presence of opportunistic retailers increases the quantity of waste and reduces global earnings for all agents. We then endogenize the attitude of retailers with a reinforcement learning mechanism and show that the number of loyal retailers reaches 80–100% of the population, depending on the difference of prices between expensive and cheap goods, which is the interval in which the production of waste is minimal. Copyright Springer Science+Business Media New York 2013
If 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.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 41 (2013)
Issue (Month): 2 (February)
|Contact details of provider:|| Web page: http://www.springerlink.com/link.asp?id=100248|
More information through EDIRC
References listed on IDEAS
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.:
- Gode, Dhananjay K & Sunder, Shyam, 1993. "Allocative Efficiency of Markets with Zero-Intelligence Traders: Market as a Partial Substitute for Individual Rationality," Journal of Political Economy, University of Chicago Press, vol. 101(1), pages 119-37, February.
- Roth, Alvin E. & Erev, Ido, 1995. "Learning in extensive-form games: Experimental data and simple dynamic models in the intermediate term," Games and Economic Behavior, Elsevier, vol. 8(1), pages 164-212.
- Erev, Ido & Roth, Alvin E, 1998. "Predicting How People Play Games: Reinforcement Learning in Experimental Games with Unique, Mixed Strategy Equilibria," American Economic Review, American Economic Association, vol. 88(4), pages 848-81, September.
- 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.
- Matthew O. Jackson & Asher Wolinsky, 1995.
"A Strategic Model of Social and Economic Networks,"
1098R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Kirman, Alan & Wolfgang Hardle & Rainer Schulz & Axel Werwatz, 2003.
"Transactions That Did Not Happen and Their Influence on Prices,"
Royal Economic Society Annual Conference 2003
123, Royal Economic Society.
- Kirman, Alan & Schulz, Rainer & Hardle, Wolfgang & Werwatz, Axel, 2005. "Transactions that did not happen and their influence on prices," Journal of Economic Behavior & Organization, Elsevier, vol. 56(4), pages 567-591, April.
- Kirman, Alan P. & Härdle, Wolfgang & Schulz, Rainer & Werwatz, Axel, 2002. "Transactions that did not happen and their influence on prices," SFB 373 Discussion Papers 2002,45, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Ariel Rubinstein & Asher Wolinsky, 1990. "Decentralized Trading, Strategic Behaviour and the Walrasian Outcome," Review of Economic Studies, Oxford University Press, vol. 57(1), pages 63-78.
- Olivier Barreteau & Christophe Le Page & Patrick D'Aquino, 2003. "Role-Playing Games, Models and Negotiation Processes," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 6(2), pages 10.
- Braouezec, Yann, 2009. "Stochastic Adaptive Dynamics of a Simple Market as a Non-Stationary Multi-Armed Bandit Problem," European Journal of Economic and Social Systems, Lavoisier, vol. 22(1), pages 19-41.
- Sonia Moulet & Juliette Rouchier, 2009.
"The influence of seller learning and time constraints on sequential bargaining in an artificial perishable goods market,"
- Moulet, Sonia & Rouchier, Juliette, 2008. "The influence of seller learning and time constraints on sequential bargaining in an artificial perishable goods market," Journal of Economic Dynamics and Control, Elsevier, vol. 32(7), pages 2322-2348, July.
- Weisbuch, Gerard & Kirman, Alan & Herreiner, Dorothea, 2000.
"Market Organisation and Trading Relationships,"
Royal Economic Society, vol. 110(463), pages 411-36, April.
- Alan Kirman & Sonia Moulet, 2008. "Impact de l'organisation du marché: Comparaison de la négociation de gré à gré et des enchères descendantes," Working Papers halshs-00349034, HAL.
- Eric Brousseau & Jean-Marie Codron, 1998. "La complémentarité entre formes de gouvernance [Le cas de l'approvisionnement des grandes surfaces en fruits de contre saison]," Économie rurale, Programme National Persée, vol. 245(1), pages 75-83.
- Rouchier, Juliette & Bousquet, Francois & Requier-Desjardins, Melanie & Antona, Martine, 2001. "A multi-agent model for describing transhumance in North Cameroon: Comparison of different rationality to develop a routine," Journal of Economic Dynamics and Control, Elsevier, vol. 25(3-4), pages 527-559, March.
- Y. Braouezec, 2009. "Stochastic Adaptive Dynamics of a Simple Market as a Non-Stationary Multi-Armed Bandit Problem," Post-Print hal-00677793, HAL.
- Arial Rubinstein & Asher Wolinsky, 1990. "Decentralized Trading, Strategic Behaviour and the Walrasian Outcome," Levine's Working Paper Archive 622, David K. Levine.
- Vriend, Nicolaas J., 2000. "An illustration of the essential difference between individual and social learning, and its consequences for computational analyses," Journal of Economic Dynamics and Control, Elsevier, vol. 24(1), pages 1-19, January.
When requesting a correction, please mention this item's handle: RePEc:kap:compec:v:41:y:2013:i:2:p:151-170. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Rebekah McClure)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.