Consumer network and market dynamics

Abstract

This paper suggests that the interaction between consumers has an impact on market structure, in addition to each consumer's own behavior. In this paper, we replicate the artificial market model proposed by Onozaki and Yanagita, and extend it by adding the network of consumers in order to show that the interaction between consumers in the market affects emerging and changing the market structure. Onozaki-Yanagita model, which is made under the idea that oligopolistic state in a market is the result of competitive situations, shows monopoly and oligopoly come out of them. We put various network structures of consumers to the model, and realize that the interaction between consumers influences in shaping the market structure.