A note on symmetry breaking in a non linear marketing model

Andrea Caravaggio, Lorenzo Cerboni Baiardi () and Mauro Sodini
Additional contact information
Andrea Caravaggio: University of Foggia
Lorenzo Cerboni Baiardi: University of Calabria
Mauro Sodini: University of Pisa

Decisions in Economics and Finance, 2021, vol. 44, issue 2, No 3, 507-531

Abstract: Abstract In this paper, we consider the nonlinear discrete-time dynamic model proposed by Bischi and Baiardi (Chaos Solitons Fractals 79:145-156, 2015a). The model considers players with adaptive adjustment mechanisms towards the best reply and a form of inertia in adopting such mechanism. Moreover, we formulate an extension of the original model, where endogenous market size is considered. Through numerical simulations, we show that multiple attractors may exist in the presence of homogeneous agents and the emergence of non-synchronized trajectories both in the short (on-off intermittency) and long (global riddling) run. Therefore, the article highlights that strategic contexts exist in which the players’ knowledge of the market and the adoption of the best reply do not always allow the use of the representative agent’s rhetoric to describe the dynamics of the model.

Keywords: Nonlinearity; Synchronization; Market share models; Representative agent (search for similar items in EconPapers)
JEL-codes: C61 C62 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10203-021-00339-6 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:decfin:v:44:y:2021:i:2:d:10.1007_s10203-021-00339-6

Ordering information: This journal article can be ordered from
http://www.springer. ... ry/journal/10203/PS2

DOI: 10.1007/s10203-021-00339-6

Access Statistics for this article

Decisions in Economics and Finance is currently edited by Paolo Ghirardato

More articles in Decisions in Economics and Finance from Springer, Associazione per la Matematica
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().