Lock-in is observed in real world markets of experience goods; experience goods are goods whose characteristics are difficult to determine in advance, but ascertained upon consumption. We create an agent-based simulation of consumers choosing between two experience goods available in a virtual market. We model consumers in a grid representing the spatial network of the consumers. Utilising simple assumptions, including identical distributions of product experience and consumers having a degree of follower tendency, we explore the dynamics of the model through simulations. We conduct simulations to create a lock-in before testing several hypotheses upon how to break an existing lock-in; these include the effect of advertising and free give-away. Our experiments show that the key to successfully breaking a lock-in required the creation of regions in a consumer population. Regions arise due to the degree of local conformity between agents within the regions, which spread throughout the population when a mildly superior competitor was available. These regions may be likened to a niche in a market, which gains in popularity to transition into the mainstream.
|Number of pages||8|
|Publication status||Published - 2010|
|Event||9th International Joint Conference on Autonomous Agents and Multiagent Systems - Toronto, ON, Canada|
Duration: 10 May 2010 → 14 May 2010
|Conference||9th International Joint Conference on Autonomous Agents and Multiagent Systems|
|Abbreviated title||AAMAS 2010|
|Period||10/05/10 → 14/05/10|
Bibliographical note© IFAAMAS
- simulation and modelling
- model development
- modelling methodologies
- human factors
- agent-based simulation
- consumer behaviour
Garlick, M., & Chli, M. (2010). Agent-based simulation of lock-in dynamics in a duopoly. 1545-1546 . Paper presented at 9th International Joint Conference on Autonomous Agents and Multiagent Systems, Toronto, ON, Canada.