Dynamic peer-to-peer competition

L.F. Caram, C.F. Caiafa, A.N. Proto and Marcel Ausloos

Physica A: Statistical Mechanics and its Applications, 2010, vol. 389, issue 13, 2628-2636

Abstract: The dynamic behavior of a multiagent system in which the agent size si is variable it is studied along a Lotka–Volterra approach. The agent size has hereby the meaning of the fraction of a given market that an agent is able to capture (market share). A Lotka–Volterra system of equations for prey–predator problems is considered, the competition factor being related to the difference in size between the agents in a one-on-one competition. This mechanism introduces a natural self-organized dynamic competition among agents. In the competition factor, a parameter σ is introduced for scaling the intensity of agent size similarity, which varies in each iteration cycle. The fixed points of this system are analytically found and their stability analyzed for small systems (with n=5 agents). We have found that different scenarios are possible, from chaotic to non-chaotic motion with cluster formation as function of the σ parameter and depending on the initial conditions imposed to the system. The present contribution aim is to show how a realistic though minimalist nonlinear dynamics model can be used to describe the market competition (companies, brokers, decision makers) among other opinion maker communities.

Keywords: Multiagent system; Dynamic competition; Peer to peer (search for similar items in EconPapers)
Date: 2010
References: View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:phsmap:v:389:y:2010:i:13:p:2628-2636

DOI: 10.1016/j.physa.2010.02.032

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