general description consumat approach

application fields:

commons dilemma

market dynamics and diffusion

links

Markets can show different type of dynamics, from quiet markets dominated by one or few products, to markets with constant penetration of new products. In other words from lock-ins to fads and fashions. The consumats have to choose each period between similar products. Assuming a population consumats with differences in preferences, social orientation, and social networks, the model simulates consumption of products for alternative assumptions on behavioural rules.
The simulation results show different type of dynamics, such as lock-in and instable renewal, for specific sets of behavioural rules behavioural rules are changed. Results show the importance of psychological variables like social networks, preferences and status needs to explain the dynamics of markets.

Further Reading:

- Janssen, M.A. and W. Jager (1999), An integrated approach to simulating behavioural processes: A case study of the lock-in of consumption patterns, Journal of Artificial Societies and Social Simulation vol. 2, no. 2.
- Janssen, M.A. and W. Jager (2001), Fashions, habits and changing preferences: simulation of psychological factors affecting market dynamics, Journal of Economic Psychology, 22: 745-772
- Janssen, M.A. and W. Jager (2002), Stimulating diffusion of green products, Co-evolution between firms and consumers, Journal of Evolutionary Economics,  12: 283-306
-Jager, W. and M.A. Janssen (2003), Diffusion Processes in Demographic Transitions: A Prospect on Using Multi Agent Simulation to Explore the Role of Cognitive Strategies and Social Interactions, in A. Fürnkranz-Prskawetz and F.C. Billari (ed.) Agent-Based Computational Demography, Springer Verlag. pp. 55-72.
- Janssen, M.A. and W. Jager (2003), Simulating Market Dynamics: The Interactions of Consumer Psychology and Structure of Social Networks, Artificial Life 9: 343-356