Endogenous Market Segmentation With Heterogeneous Agents
نویسنده
چکیده
An explanation is provided for the evolution of segmented marketplaces in a pairwise exchange economy. Large traders operating in a pairwise exchange market prefer to meet other similar traders, because this enables them to trade their endowments in a smaller number of encounters. Large and small traders, however, cannot be distinguished a priori, and the existence of the small traders imposes a negative externality on the large traders. We show that, under conditions which are not very restrictive, establishing a separate market (perhaps with an entry fee) designated for the large traders induces the two types of traders to segment themselves. However, this segmentation is not necessarily welfare improving.
منابع مشابه
Neural Network Approach for Herbal Medicine Market Segmentation
Market segmentation is the start point of executing targeted marketing strategy. This study aims to determine fit dimensions and appropriate specifications for the segmentation of herbal medicines market in order to provide production and market departments with fit strategies by identifying the profile of the market customers and recognizing their differences in the identified indices. This is...
متن کاملA Model of Bounded Rational Consumers with Endogenous Preferences
This paper intends to be a contribution towards an evolutionary theory of consumer. Standard economic theory assumes perfectly rational agents acting upon exogenously given preferences. Here it is proposed a bounded rational representation of consumers, which seems even more justified for consumers than for producers since they are not subject to competitive pressures and there cannot exist any...
متن کاملAsset Pricing Under Endogenous Expectations in an Artificial Stock Market
We propose a theory of asset pricing based on heterogeneous agents who continually adapt their expectations to the market that these expectations aggregatively create. And we explore the implications of this theory computationally using our Santa Fe artificial stock market. Asset markets, we argue, have a recursive nature in that agents’ expectations are formed on the basis of their anticipatio...
متن کاملAn heterogeneous expectations target zone model * ́
This paper studies the credibility of a target zone considering the existence of heterogeneous expectations in the foreign exchange market. In general, we consider two types of agents: credible and non-credible agents (i.e. fundamentalists). One of the main results of the model is the possibility of collapse of a target zone as a function of expectations. This implies the existence of an endoge...
متن کاملDeveloping a Macro-segmentation Model at Industry Level: Iranian Banking Industry
Drastic changes and turbulence in macro-economic factors have the greatest impact on banks target market attractiveness in Iran. It is assumed that conventional segmentation models at the corporate level are not efficient for banking system. This study aims to develop a new segmentation model at the industry level for banks of Iran. For this purpose, structures and variables at the industry lev...
متن کامل