Product differentiation under bounded rationality

B. Vermeulen; J.A. Poutré, La; A.G. Kok, de; A. Pyka

doi:10.1007/978-3-319-13359-1_53

Product differentiation under bounded rationality

B. Vermeulen, J.A. Poutré, La, A.G. Kok, de, A. Pyka

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Academic › peer-review

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Abstract

We study product differentiation equilibria and dynamics on the Salop circle under bounded rationality. Due to bounded rationality, firms tend to agglomerate in pairs. Upon adding a second tier of component suppliers, downstream assemblers may escape pairwise horizontal agglomeration. Moreover, we find a persistent propensity to vertically agglomerate near suppliers as well as ubiquitous dynamic equilibria. Conclusively, to understand product differentiation equilibria and dynamics, products and their supply chains need to be disaggregated.

Original language	English
Title of host publication	Proceedings of the 18th Asia Pacific Symposium on Intelligent and Evolutionary Systems
Editors	H. Handa, H. Ishibuchi, Y.-S. Ong, K.-C. Tan
Place of Publication	Berlin
Publisher	Springer
Pages	695-709
Volume	1
DOIs	https://doi.org/10.1007/978-3-319-13359-1_53
Publication status	Published - 2015

Publication series

Name	Proceedings in Adaptation, Learning and Optimization
Volume	1
ISSN (Print)	2363-6084

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Vermeulen, B., Poutré, La, J. A., Kok, de, A. G., & Pyka, A. (2015). Product differentiation under bounded rationality. In H. Handa, H. Ishibuchi, Y.-S. Ong, & K.-C. Tan (Eds.), Proceedings of the 18th Asia Pacific Symposium on Intelligent and Evolutionary Systems (Vol. 1, pp. 695-709). (Proceedings in Adaptation, Learning and Optimization; Vol. 1). Springer. https://doi.org/10.1007/978-3-319-13359-1_53

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title = "Product differentiation under bounded rationality",

abstract = "We study product differentiation equilibria and dynamics on the Salop circle under bounded rationality. Due to bounded rationality, firms tend to agglomerate in pairs. Upon adding a second tier of component suppliers, downstream assemblers may escape pairwise horizontal agglomeration. Moreover, we find a persistent propensity to vertically agglomerate near suppliers as well as ubiquitous dynamic equilibria. Conclusively, to understand product differentiation equilibria and dynamics, products and their supply chains need to be disaggregated.",

author = "B. Vermeulen and {Poutr{\'e}, La}, J.A. and {Kok, de}, A.G. and A. Pyka",

year = "2015",

doi = "10.1007/978-3-319-13359-1_53",

language = "English",

volume = "1",

series = "Proceedings in Adaptation, Learning and Optimization",

publisher = "Springer",

pages = "695--709",

editor = "H. Handa and H. Ishibuchi and Y.-S. Ong and K.-C. Tan",

booktitle = "Proceedings of the 18th Asia Pacific Symposium on Intelligent and Evolutionary Systems",

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Vermeulen, B, Poutré, La, JA, Kok, de, AG & Pyka, A 2015, Product differentiation under bounded rationality. in H Handa, H Ishibuchi, Y-S Ong & K-C Tan (eds), Proceedings of the 18th Asia Pacific Symposium on Intelligent and Evolutionary Systems. vol. 1, Proceedings in Adaptation, Learning and Optimization, vol. 1, Springer, Berlin, pp. 695-709. https://doi.org/10.1007/978-3-319-13359-1_53

Product differentiation under bounded rationality. / Vermeulen, B.; Poutré, La, J.A.; Kok, de, A.G. et al.
Proceedings of the 18th Asia Pacific Symposium on Intelligent and Evolutionary Systems. ed. / H. Handa; H. Ishibuchi; Y.-S. Ong; K.-C. Tan. Vol. 1 Berlin: Springer, 2015. p. 695-709 (Proceedings in Adaptation, Learning and Optimization; Vol. 1).

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Academic › peer-review

TY - GEN

T1 - Product differentiation under bounded rationality

AU - Vermeulen, B.

AU - Poutré, La, J.A.

AU - Kok, de, A.G.

AU - Pyka, A.

PY - 2015

Y1 - 2015

N2 - We study product differentiation equilibria and dynamics on the Salop circle under bounded rationality. Due to bounded rationality, firms tend to agglomerate in pairs. Upon adding a second tier of component suppliers, downstream assemblers may escape pairwise horizontal agglomeration. Moreover, we find a persistent propensity to vertically agglomerate near suppliers as well as ubiquitous dynamic equilibria. Conclusively, to understand product differentiation equilibria and dynamics, products and their supply chains need to be disaggregated.

AB - We study product differentiation equilibria and dynamics on the Salop circle under bounded rationality. Due to bounded rationality, firms tend to agglomerate in pairs. Upon adding a second tier of component suppliers, downstream assemblers may escape pairwise horizontal agglomeration. Moreover, we find a persistent propensity to vertically agglomerate near suppliers as well as ubiquitous dynamic equilibria. Conclusively, to understand product differentiation equilibria and dynamics, products and their supply chains need to be disaggregated.

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DO - 10.1007/978-3-319-13359-1_53

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T3 - Proceedings in Adaptation, Learning and Optimization

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EP - 709

BT - Proceedings of the 18th Asia Pacific Symposium on Intelligent and Evolutionary Systems

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A2 - Ishibuchi, H.

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PB - Springer

CY - Berlin

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Vermeulen B, Poutré, La JA, Kok, de AG, Pyka A. Product differentiation under bounded rationality. In Handa H, Ishibuchi H, Ong YS, Tan KC, editors, Proceedings of the 18th Asia Pacific Symposium on Intelligent and Evolutionary Systems. Vol. 1. Berlin: Springer. 2015. p. 695-709. (Proceedings in Adaptation, Learning and Optimization). doi: 10.1007/978-3-319-13359-1_53

Product differentiation under bounded rationality

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