In this paper we consider some nonlinear discrete-time dynamic models proposed in the literature to represent marketing competition, and we use these models to critically discuss the statement, often made in economic literature, that identical agents behave identically and quasi-identical ones behave in a similar way. We show, through examples and some general mathematical statements, that the one-dimensional model of a representative agent, whose dynamics summarize the common behavior of identical interacting agents, may be misleading. In order to discuss these topics some simple methods for the study of local stability and bifurcations are employed, as well as numerical examples where some results taken from the literature on chaos synchronization are applied to two-dimensional marketing models that exhibit riddling, blowout and other global phenomena related to the existence of measure-theoretic attractors. © 2014 Elsevier B.V.

Fallacies of composition in nonlinear marketing models

Bischi G. I.
;
Cerboni Baiardi L.
2015

Abstract

In this paper we consider some nonlinear discrete-time dynamic models proposed in the literature to represent marketing competition, and we use these models to critically discuss the statement, often made in economic literature, that identical agents behave identically and quasi-identical ones behave in a similar way. We show, through examples and some general mathematical statements, that the one-dimensional model of a representative agent, whose dynamics summarize the common behavior of identical interacting agents, may be misleading. In order to discuss these topics some simple methods for the study of local stability and bifurcations are employed, as well as numerical examples where some results taken from the literature on chaos synchronization are applied to two-dimensional marketing models that exhibit riddling, blowout and other global phenomena related to the existence of measure-theoretic attractors. © 2014 Elsevier B.V.
Composition; Market share models; Nonlinearity; Representative agent; Synchronization
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/20.500.11770/302471
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 12
  • ???jsp.display-item.citation.isi??? ND
social impact