Dynamics of Price Sensitivity and Market Structure in an Evolutionary Economic Matching Model
نویسندگان
چکیده
The relationship between equilibrium convergence to a uniform quality distribution and price is investigated in the Qmodel, a self-organizing, evolutionary computational matching model of a fixed-price post-secondary higher education system created by Ortmann and Slobodyan (2006). The Q-model is replicated with price equaling its Ortmann and Slobodyan (2006) value P*. Varying the fixed price between 0 and 2P* reveals thresholds at which the Q-model reaches different market clustering configurations. Results indicate structural market robustness to prices less than P* and high sensitivity to prices greater than P*.
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