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Author Schuster, Ulrike ♦ Wöckl, Jürgen
Source CiteSeerX
Content type Text
File Format PDF
Subject Domain (in DDC) Computer science, information & general works ♦ Data processing & computer science
Subject Keyword Optimal Defensive Strategy ♦ Consumer Distributional Pattern ♦ Market Maturity ♦ Boundary Solution ♦ Late Entry ♦ Maximal Profit ♦ Certain Degree ♦ Consumer Aspiration Point ♦ Optimal Price-budget Combination ♦ Artificial Consumer Market ♦ Simulation Approach ♦ Incumbent Threshold ♦ Entrant Threshold ♦ Entrant Situation
Abstract In this paper we describe a simulation approach to explore optimal defensive strategies concerning an entrant situation in an artificial consumer market. There are two questions of interest concerning the adaptation of the strategy to obtain maximal profits—the effects of (1) varying heterogeneity of the considered consumer aspiration points and (2) the maturity of the market at the time of entry. The resulting optimal price-budget combinations remain stable up to a certain degree of heterogeneity. Then a threshold is reached beyond which further disaggregating the market leads to boundary solutions. The entrant threshold seems to be slightly lower than the incumbent threshold. In the case of very late entry a boundary solution seems to be optimal for the entrant in the sense of minimizing losses.
Educational Role Student ♦ Teacher
Age Range above 22 year
Educational Use Research
Education Level UG and PG ♦ Career/Technical Study
Learning Resource Type Article