Psychological factors affecting market dynamics: the role of uncertainty and need satisfaction

Marco A. Janssen () and Wander Jager ()
Additional contact information
Marco A. Janssen: Department of Spatial Economics, Vrije Universiteit, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands
Wander Jager: Centre for Environmental and Traffic Psychology, University of Groningen, Grote Kruisstraat 2/I, 9712 TS Groningen, The Netherlands

Advances in Complex Systems (ACS), 2000, vol. 03, issue 01n04, 323-334

Abstract: Markets can show different types of dynamics, ranging from stable markets dominated by one or a few products, to fluctuating markets where products are frequently being replaced by new versions. This paper explores the dynamics of markets from a psychological perspective using a multi-agent simulation model. The behavioural rules of the artificial consumers, the consumats, are based on a conceptual meta-theory from psychology. The artificial consumers have to choose each period between different products. Products remain on the market for as long as their market share exceeds a minimum level. If not, it will be replaced by a new product.Simulation experiments are being performed with a population of consumats having different preferences. Results show that the dominating type of cognitive (choice) process has large consequences for the resulting market dynamics. Moreover, the size of the social network affects the market dynamics too.

Keywords: social networks; consumer behaviour; market dynamics (search for similar items in EconPapers)
Date: 2000
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0219525900000236
Access to full text is restricted to subscribers

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:wsi:acsxxx:v:03:y:2000:i:01n04:n:s0219525900000236

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0219525900000236

Access Statistics for this article

Advances in Complex Systems (ACS) is currently edited by Frank Schweitzer

More articles in Advances in Complex Systems (ACS) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().