dynamics explain the evolution, from birth to death, of industries,
products, technologies, tastes, agents, institutions.
economics is the strongest paradigm for industrial dynamics.
Analysing retailing opportunities and threats
using agent-based simulation
As a valuable supporting tool for the marketing
analysis of opportunities and threats on retail markets, an agent-based
simulator is proposed, providing insights to answer to questions
- What happens in the distribution landscape
if we open a new outlet? Where should it be located? What profile
(assortment composition, price levels, size) the new outlet should
- What if competitors open or close outlets? What should we then
change in the profile of our outlets?
- What if the purchasing behaviour of consumer households changes?
E.g. purchasing power and decision rules changes due to economic
- What if the cost structure changes? E.g. there is easy funding
of outlets in less-favoured areas by municipalities and regional
with bi-directional product differentiation, bounded rational consumers,
innovation, advertising, and finance
paper explains and offers you a powerful software tool for understanding
the introduction of product and process innovation
in a competitive market. Consumers are individual agents with different
tastes and personal income. In terms of industrial dynamics, you'll
see how product life cycles arise by personally playing the software
model or by observing how artificial agents perform.
and software automatic download [2400 KB]
An easy yet powerful, flexible and innovative
model of bounded rational insurance purchases, both under a mandate
and voluntary participation schemes, with insurers in competition
being able to refuse to sell (or being prevented from doing that).
Among many other issues, you can explore the reasons why people
remain uninsured, including income and ignorance of the risk.
MS Excel file
Consumer decision rules for agent-based models
Market dynamics depend not only from supply-side
choices but also from the decision making process of consumers during
the different phases of the sector life cycle. Quoted in several
peer-review journals, this paper offers a micro-foundation of demand
allowing for heterogenous bounded rational consumers, product differentiation,
purchase repetition over time.
In particular, you shall find the rules of consumer
behavour used in the freely downloadable model
of free competition with bi-directional product differentiation,
and finance that gave rise to these micro-data
showing you the characteristichs of early adopters, late adopters,
Moreover, it suggests to ACE modellers a "golden
rule" for more realistic models.
Peer-reviewed journals quoting this paper:
IBM Journal of Research and Development
European Journal of Operational Research
Gaming Law Review and Economics
ASME 2006 International Design Engineering Technical Conferences
and Computers and Information in Engineering Conference
International Business Information Management
Design of Regional Innovation Systems by Georg Erber
World market share - daily - for web browsers (2008-2012)
Look at real data about the diffusion of Explorer, Firefox, Safari
and Chrome - how new versions cannibalise earlier ones or try to
gain market share from competitors. Check in the original source
whether your country leads or follows world dynamics.
of best practices in marketing traditional food - by Valentino
Piana et al.
design as marketing: How game mechanics create demand for virtual
goods (2010) - a paper quoting our key concept: product
You are a monopolist
The traditional monopolist's choice about price and quantity is
now given a new dynamic setting where you can interact. Demand is
unknown and the produced good is durable across periods of time.
Thus, sales needn't be equal to production since inventories can
pile up and go down. A lot of strategic consequences arise, as you
can discover playing with the business game.
Software [1900 KB] - Essay
Financial Decision Making, and Financial Crises (March 2010)
It is understandable in times of the current
financial crisis that people ask how this could happen. Since the
market actors appear irrational, it is also understandable that
people – lay people and experts alike – believe that psychological
factors play a decisive role. This article reviews, evaluates, and
discusses psychological research which has the potential of increasing
the understanding of both psychological antecedents and consequences
of financial crises. It also provide hints for new policies and
The Performativity of Routines:
Theorising the Influence of Artefacts and Distributed Agencies on
Routines Dynamics by L. DAdderio
Industry Dynamics, and the Evolution of the U.S. Laser Industry