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Agent-Based Modeling of Context Effects in Consumer Choice

Author

Listed:
  • Jarod Vanderlynden

    (Université de Lille, CRIStAL - Centre de Recherche en Informatique, Signal et Automatique de Lille - UMR 9189 - Centrale Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique, SMAC - Systèmes Multi-Agents et Comportements - CRIStAL - Centre de Recherche en Informatique, Signal et Automatique de Lille - UMR 9189 - Centrale Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Philippe Mathieu

    (Université de Lille, CRIStAL - Centre de Recherche en Informatique, Signal et Automatique de Lille - UMR 9189 - Centrale Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique, SMAC - Systèmes Multi-Agents et Comportements - CRIStAL - Centre de Recherche en Informatique, Signal et Automatique de Lille - UMR 9189 - Centrale Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique)

  • Romain Warlop

    (55 - Fifty-five)

Abstract

This paper presents an agent-based model that explains three major context effects: decoy, similarity, and compromise effects, commonly observed in consumer decision-making. The model uses loss aversion theory, using a utility function that evaluates products relative to a reference point, defined by the average price and quality of all competing options. Agents are characterized by varying sensitivities to price and quality. Rather than forecasting exact consumer numbers, the model simulates relative preferences within a fixed population, making it a robust tool for analyzing market share dynamics. It accurately reproduces key behavioral phenomena and is calibrated using real-world retail data. Practical applications include price optimization and forecasting the impact of new product introductions. This framework offers a powerful yet focused tool for marketers seeking to understand and leverage consumers behaviors in competitive environments.

Suggested Citation

  • Jarod Vanderlynden & Philippe Mathieu & Romain Warlop, 2025. "Agent-Based Modeling of Context Effects in Consumer Choice," Post-Print hal-05344092, HAL.
    • Handle: RePEc:hal:journl:hal-05344092
    DOI: 10.3233/FAIA251239
    Note: View the original document on HAL open archive server: https://hal.science/hal-05344092v1
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    References listed on IDEAS

    as
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