The role of consumer networks in firms’ multi-characteristics competition and market share inequality
Open access
Datum
2017-12Typ
- Journal Article
Abstract
We develop a location analysis spatial model of firms' competition in multi-characteristics space, where consumers' opinions about the firms' products are distributed on multilayered networks. Firms do not compete on price but only on location upon the products' multi-characteristics space, and they aim to attract the maximum number of consumers. Boundedly rational consumers have distinct ideal points/tastes over the possible available firm locations but, crucially, they are affected by the opinions of their neighbors. Proposing a dynamic agent-based analysis on firms' location choice we characterize multi-dimensional product differentiation competition as adaptive learning by firms' managers and we argue that such a complex systems approach advances the analysis in alternative ways, beyond game-theoretic calculations. Mehr anzeigen
Persistenter Link
https://doi.org/10.3929/ethz-b-000192713Publikationsstatus
publishedExterne Links
Zeitschrift / Serie
Structural Change and Economic DynamicsBand
Seiten / Artikelnummer
Verlag
ElsevierThema
Location choiceOrganisationseinheit
03682 - Schweitzer, Frank / Schweitzer, Frank