Adaptive Learning Models of Consumer Behavior
نویسندگان
چکیده
In a model of dynamic duopoly, optimal price policies are characterized assuming consumers learn adaptively about the relative quality of the two products. A contrast is made between belief-based and reinforcement learning. Under reinforcement learning, consumers can become locked into the habit of purchasing inferior goods. Such lock-in permits the existence of multiple history-dependent asymmetric steady states in which one firm dominates. In contrast, belief-based learning rules must lead asymptotically to correct beliefs about the relative quality of the two brands and so in this case there is a unique steady state. Journal of Economic Literature classification numbers: C73, D11, D83, L13, M31.
منابع مشابه
Investigating and Analysing Instructional Design and Workplace Learning Models and Selection of Adaptive Model to Optimize Organizational Training in Petrochemical Industry
The present research aimed to analyze instructional design,workplace learning, and selecting the optimum model of learning for human resources training in petrochemical industry.The previous roles have become faint and new opportunities have appeared in petrochemical industry by starting the process of privatization and changing the nature of the company from holding to a governance and develop...
متن کاملConsumer Learning of Product Quality with Time Delay: Insights from Spatial Price Equilibrium Models with Differentiated Products
In this paper, we present spatial price equilibrium network models, both static and adaptive, with differentiated products under perfect quality information for producers and consumers and under quality information asymmetry with consumer learning of product quality with a time delay. The adaptive model with information asymmetry is able to adapt to the uncertainty in consumer learning as well ...
متن کاملA Simple Method to Estimate the Roles of Learning, Inventories and Category Consideration in Consumer Choice
Models of consumer learning and inventory behavior have both proven to be valuable for explaining consumer choice dynamics. In their pure form these models assume consumers solve complex dynamic programming (DP) problems to determine optimal choices. For this reason, these models are best viewed as “as if” approximations to consumer behavior. In this paper we present an estimation method, based...
متن کاملReinforcement Learning Based PID Control of Wind Energy Conversion Systems
In this paper an adaptive PID controller for Wind Energy Conversion Systems (WECS) has been developed. Theadaptation technique applied to this controller is based on Reinforcement Learning (RL) theory. Nonlinearcharacteristics of wind variations as plant input, wind turbine structure and generator operational behaviordemand for high quality adaptive controller to ensure both robust stability an...
متن کاملOptimal implementation of the TOU load response program by providing an economical model related to the behavior of residential electricity consumers.
The important defect of the previous models , is assumed that consumer behavior is based on logic and with a rise in the price their consumption decreased and they accurately have no problems with their control. However, various parameters such as lifestyle, habits and emotions and something like that can be effective. In this paper, we use the new model called the OLG model and the CRRA funct...
متن کامل