Consumer attention and market concentration in e-commerce: an agent-based perspective

Teng Li (), Shaoni Wang (), Deyi Zhou () and Amar Razzaq ()
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Teng Li: Huazhong Agricultural University
Shaoni Wang: University of Groningen
Deyi Zhou: Huazhong Agricultural University
Amar Razzaq: Huanggang Normal University

Journal of Economic Interaction and Coordination, 2025, vol. 20, issue 4, No 5, 959-985

Abstract: Abstract This study explores how limited consumer attention influences market concentration in e-commerce. Consumer attention, a scarce resource amidst abundant product information, plays a crucial role in shaping market dynamics. Despite its importance, the effect of limited consumer attention on e-commerce market concentration has not been extensively studied. Using agent-based modeling, we examine the interplay of consumer behaviors, bounded rationality, and social interactions in complex markets. Our results reveal that e-commerce market concentration persists even without product differentiation among sellers. Notably, a negative correlation emerges between consumer attention and market concentration, consistent across different market sizes and social connection densities. These findings provide theoretical insights into market concentration patterns in the Internet economy and contribute to the broader understanding of market structure dynamics.

Keywords: Limited attention; Market concentration; Social processing; Agent-based modeling; E-commerce (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11403-025-00443-5

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