A Kinetic model for an agent based market simulation

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

A kinetic model for a specic agent based simulation to generate the sales curves of successive generations of high-end computer chips is devel-oped. The resulting continuum market model consists of transport equations in two variables, representing the availability of money and the desire to buy a new chip. In lieu of typical collision terms in the kinetic equations that discontinuously change the attributes of an agent, discontinuous changes are initiated via boundary conditions between sets of partial differential equations. A scaling analysis of the transport equations determines the different time scales that constitute the market forces, characterizing different sales scenarios. It is argued that the resulting model can be adjusted to generic markets of multi-generational technology products where the innovation time scale is an important driver of the market.

Original languageEnglish (US)
Pages (from-to)527-542
Number of pages16
JournalNetworks and Heterogeneous Media
Volume10
Issue number3
DOIs
StatePublished - 2015

Fingerprint

Kinetic Model
Transport Equation
Kinetics
Sales
Time Scales
Chip
Simulation
Market Model
Agent-based Simulation
Continuum Model
Kinetic Equation
Partial differential equations
Driver
Availability
Collision
Partial differential equation
Innovation
Attribute
Boundary conditions
Scaling

Keywords

  • agent based simulations
  • Kinetic theory
  • market models
  • multi- generational technology products

ASJC Scopus subject areas

  • Applied Mathematics
  • Statistics and Probability
  • Engineering(all)
  • Computer Science Applications

Cite this

A Kinetic model for an agent based market simulation. / Armbruster, Hans; Ringhofer, Christian; Thatcher, Andrea.

In: Networks and Heterogeneous Media, Vol. 10, No. 3, 2015, p. 527-542.

Research output: Contribution to journalArticle

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