Minority Game of price promotions in fast moving consumer goods markets

Robert D. Groot and Pieter A.D. Musters

Physica A: Statistical Mechanics and its Applications, 2005, vol. 350, issue 2, 533-547

Abstract: A variation of the Minority Game has been applied to study the timing of promotional actions at retailers in the fast moving consumer goods market. The underlying hypotheses for this work are that price promotions are more effective when fewer than average competitors do a promotion, and that a promotion strategy can be based on past sales data. The first assumption has been checked by analysing 1467 promotional actions for three products on the Dutch market (ketchup, mayonnaise and curry sauce) over a 120-week period, both on an aggregated level and on retailer chain level.

Keywords: Markets; Minority game; Econophysics; Consumer goods (search for similar items in EconPapers)
Date: 2005
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:350:y:2005:i:2:p:533-547

DOI: 10.1016/j.physa.2004.11.010

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