dorsal/arxiv
View SchemaStrategy bifurcation and spatial inhomogeneity in a simple model of competing sellers
| Authors | L. Mitchell, G. J. Ackland |
|---|---|
| Categories | |
| ArXiv ID | physics/0703156 |
| URL | https://arxiv.org/abs/physics/0703156 |
| DOI | 10.1209/0295-5075/79/48003 |
| Journal | Europhys. Lett., 79 (4) 48003 (2007) |
Abstract
We present a simple one-parameter model for spatially localised evolving agents competing for spatially localised resources. The model considers selling agents able to evolve their pricing strategy in competition for a fixed market. Despite its simplicity, the model displays extraordinarily rich behavior. In addition to ``cheap'' sellers pricing to cover their costs, ``expensive'' sellers spontaneously appear to exploit short-term favorable situations. These expensive sellers ``speciate'' into discrete price bands. As well as variety in pricing strategy, the ``cheap'' sellers evolve a strongly correlated spatial structure, which in turn creates niches for their expensive competitors. Thus an entire ecosystem of coexisting, discrete, symmetry-breaking strategies arises.
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"abstract": "We present a simple one-parameter model for spatially localised evolving\nagents competing for spatially localised resources. The model considers selling\nagents able to evolve their pricing strategy in competition for a fixed market.\nDespite its simplicity, the model displays extraordinarily rich behavior. In\naddition to ``cheap\u0027\u0027 sellers pricing to cover their costs, ``expensive\u0027\u0027\nsellers spontaneously appear to exploit short-term favorable situations. These\nexpensive sellers ``speciate\u0027\u0027 into discrete price bands. As well as variety in\npricing strategy, the ``cheap\u0027\u0027 sellers evolve a strongly correlated spatial\nstructure, which in turn creates niches for their expensive competitors. Thus\nan entire ecosystem of coexisting, discrete, symmetry-breaking strategies\narises.",
"arxiv_id": "physics/0703156",
"authors": [
"L. Mitchell",
"G. J. Ackland"
],
"categories": [
"physics.soc-ph",
"q-fin.TR"
],
"doi": "10.1209/0295-5075/79/48003",
"journal_ref": "Europhys. Lett., 79 (4) 48003 (2007)",
"title": "Strategy bifurcation and spatial inhomogeneity in a simple model of competing sellers",
"url": "https://arxiv.org/abs/physics/0703156"
},
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