Showing 1 - 10 of 383
We present a computational model of consumer behavior. Consumers possess expectation-based reference-dependent preferences and are disappointment averse. They interact with each other on static social network. They exchange and update their beliefs about the quality of the product. Individual...
Persistent link: https://www.econbiz.de/10010614858
We present a discrete choice model based on agent interaction. The framework combines the features of two well-known models of word-of-mouthcommunication (Ellison and Fudenberg, 1995 and Bala and Goyal, 2001).Interaction structure is a regular periodic lattice with decision-makers interacting...
Persistent link: https://www.econbiz.de/10009147048
This paper is concerned with clustering in demand. We present a discrete choice model of consumption that incorporates habit formation and information exchange among consumers in fixed social networks. We provide an analytical solution to a special case of the model by using technical tools from...
Persistent link: https://www.econbiz.de/10005510304
This paper presents a model of asymmetric (S,s) pricing. We investigate implications of such a behavior for the effectiveness of the monetary policy. We discuss two types of asymmetric responses to monetary interventions. One is the symmetry in the responses to positive and negative monetary...
Persistent link: https://www.econbiz.de/10011158587
In this paper I review the evidence from marketing and psychology literature about the purchase behavior of consumers. I concentrate on the characteristics of the choice process, choice of the external information source and nature of the information obtained from these sources. The impact of...
Persistent link: https://www.econbiz.de/10010856432
This paper presents a simple boundedly rational model of a firm and consumer behaviour. We formulate an entry game, where every firm decides on investing in R&D for inventing a new product that will appeal to certain group of consumers. The success depends on the amount of funds available for...
Persistent link: https://www.econbiz.de/10010856447
We present a choice model based on agent interaction. Interaction is modeled as face-to-face communication that takes place on a regular periodic lattice with decision-makers exchanging information only with immediate neighbors. We investigate the long-run (equilibrium) behavior of the resulting...
Persistent link: https://www.econbiz.de/10010949864
Persistent link: https://www.econbiz.de/10011020565
This paper presents a model of asymmetric (S,s) pricing. We investigate implications of such a behavior for the effectiveness of the monetary policy. We discuss two types of asymmetric responses to monetary interventions. One is the symmetry in the responses to positive and negative monetary...
Persistent link: https://www.econbiz.de/10011020621
Persistent link: https://www.econbiz.de/10011020624