Evolving market structure: An ACE model of price dispersion and loyalty

Journal of Economic Dynamics and Control

Volumn 25, Issue 3-4, 2001, Pages 459-502

  Kirman, Alan P ^a   Vriend, Nicolaas J ^b  

^a Centre National de la Recherche Scientifique   (France)

^b QUEEN MARY UNIVERSITY OF LONDON   (United Kingdom)

Author keywords

Adaptive behavior; C70; D40; D80; L10; L70; Loyalty; Price dispersion

Indexed keywords

EID: 0012843381     PISSN: 01651889     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0165-1889(00)00033-6     Document Type: Article

References (49)

1. Aghion P., Harris C., Julien B. Optimal learning by experimentation. Review of Economic Studies. 58:1991;621-654.
2. Baillie, R.T., Bollerslev, T., 1997. The forward premium anomaly is not as bad as you think. Mimeo.
3. Bergemann, D., Valimaki, J., 1995. Learning and strategic pricing: further results. Mimeo, Northwestern University and Yale University.
4. Bergemann D., Valimaki J. Learning and strategic pricing. Econometrica. 64:1996;1125-1149.
5. Bolton, P., Harris, C., 1993. Strategic experimentation. Discussion Paper TE/93/261, London School of Economics.
6. Borenstein S. Selling costs and switching costs: explaining retail gasoline margins. RAND Journal of Economics. 22(3):1991;354-369.
7. Burdett K., Judd K. Equilibrium price dispersion. Econometrica. 51:1983;955-969.
8. Bush R.R., Mosteller F. Stochastic Models for Learning. 1955;Wiley, New York.
9. De Francesco, M.A., 1996. Customer Markets as an Efficient Outcome of a Dynamic Choosing-the-Seller Game (Quaderni del dipartimento di economia politica 205), University of Siena.
10. Diamond P.A. A model of price adjustment. Journal of Economic Theory. 3:1971;156-168.
11. Durlauf, S.N., 1995. Neighborhood feedbacks, endogenous stratification, and income inequality. Working Paper 95-07-061, Santa Fe Institute.
12. Easley, D., Rustichini, 1999. Choice without beliefs. Econometrica 67, 1157-1184.
13. Felli, L., Harris, C., 1994. Job matching, learning and the distribution of surplus. Mimeo, London School of Economics.
14. Friedman M. The methodology of positive economics. Friedman M. Essays in Positive Economics. 1953;3-43 University of Chicago Press, Chicago.
15. Futia C.A. Excess supply equilibria. Journal of Economic Theory. 14:1977;200-220.
16. Gale J., Binmore K., Samuelson L. Learning to be imperfect: the ultimatum game. Games and Economic Behavior. 8:1995;56-90.
17. Graddy K. Testing for imperfect competition at the Fulton fish market. Rand Journal of Economics. 26:1995;75-92.
18. Güth W., Tietz R. Ultimatum bargaining behavior: a survey and comparison of experimental results. Journal of Economic Psychology. 11:1990;417-440.
19. Härdle W., Kirman A.P. Nonclassical demand: a model-free examination of price-quantity relations in the Marseille fish market. Journal of Econometrics. 67:1995;227-257.
20. Hayek F.A. The facts of the social sciences (reprint). Hayek F.A. Individualism and Economic Order. 1948;57-76 University of Chicago Press, Chicago.
21. Hayek F.A. Socialist calculation I: the nature and history of the problem (reprint). Hayek F.A. Individualism and Economic Order. 1948;119-147 University of Chicago Press, Chicago.
22. Hayek F.A. Degrees of explanation (reprint). Hayek F.A. Studies in Philosophy, Politics and Economics. 1967;3-21 University of Chicago Press, Chicago.
23. Holland J.H. Adaptation in Natural and Artificial Systems. 1975;University of Michigan Press, Ann Arbor.
24. Holland J.H., Holyoak K.J., Nisbett R.E., Thagard P.R. Induction: Processes of Inference, Learning, and Discovery. 1986;MIT Press, Cambridge, MA.
25. Hopkins, E., 1995. Price dispersion: an evolutionary approach. Mimeo.
26. Kirman, A.P., 1994. Economies with Interacting Agents. Working Paper 94-05-030, Santa Fe Institute.
27. Kirman, A.P., McCarthy, M., 1990. Equilibrium Prices and Market Structure: The Marseille Fish Market. Mimeo.
28. Kirman A.P., Vignes A. Price-dispersion: theoretical considerations and empirical evidence from the Marseille fish market. Arrow K.J. Issues in Contemporary Economics: Proceedings of the Ninth World Congress of the International Economics Association, Athens, Greece, Vol. 1. Markets and Welfare. 1991;160-185 MacMillan, London.
29. Kirman, A.P., Vriend, N.J., 1995. Evolving market structure: a model of price dispersion and loyalty. Mimeo, Paper presented at the Workshop Economic ALife, Santa Fe Institute.
30. Klemperer P. Competition when consumers have switching costs: an overview with applications to industrial organization, macroeconomics and international trade. Review of Economic Studies. 62(4):1995;515-539.
31. Mailath, G., Samuelson, L., Shaked, A., 1993. Correlated equilibria as network equilibria. Discussion Paper No. B-244, University of Bonn.
32. Moreno, D., Wooders, J., 1997. Price dynamics, trading patterns, and delay in a market with pairwise meetings and private information. Mimeo.
33. O'Hara M. Market Microstructure Theory. 1994;Blackwell, Oxford.
34. Ramsauer, A., 1998. Non-Walrasian outcomes in a two-sided search model with ex ante heterogeneous agents and infinitesimal frictions. Mimeo.
35. Richardson G.B. Information and Investment. 1960;Oxford University Press, Oxford.
36. Roth A.E., Erev I. Learning in extensive-form games: experimental data and simple dynamic models in the intermediate term. Games and Economic Behavior. 8:1995;164-212.
37. Royal Mail, 1999. (tv commercial), Fall.
38. Sarin, R., Vahid, F., 1997. Payoff assessments without probabilities: a simple dynamic model of choice. Mimeo.
39. Stahl D.O. Bertrand competition for inputs and Walrasian outcomes. American Economic Review. 78:1988;189-201.
40. Stanley, E.A., Ashlock, D., Tesfatsion, L., 1993. Iterated prisoner's dilemma with choice and refusal of partners. ISU Economic Report No. 30, Iowa State University.
41. Sutton R.S. Introduction: the challenge of reinforcement learning. Machine Learning. 8(3) / 4:1992;225-227.
42. The Economist, 1999. News from the Lab, May 8.
43. Vignes, A., 1993. Dispersion de prix et marchés décentralisés: le cas du marché au poisson de Marseille. Ph.D. Thesis, European University Institute, Florence.
44. Vriend N.J. A new perspective on decentralized trade. Economie Appliquée. 47(4):1994;5-22.
45. Vriend N.J. Self-organization of markets: an example of a computational approach. Computational Economics. 8:1995;205-231.
46. Vriend N.J. Rational behavior and economic theory. Journal of Economic Behavior and Organization. 29(2):1996;263-285.
47. Vriend, N.J., 1999. Was Hayek an Ace? (Working Paper No. 403) Queen Mary and Westfield College, University of London.
48. Weisbuch, G., Kirman, A.P., Herreiner, D., 2000. Market organisation. Economic Journal 110 (465), 411-436.
49. Wilson J.A. Adaptation to uncertainty and small numbers exchange: the new England fresh fish market. Rand Journal of Economics. 11:1980;491-504.