Agent-based Simulation of Durables Dynamic Pricing

AbstractThe market is a complex economic system, in which all members adaptively interact with each other and with the environment to make decisions. Therefore, pricing dynamically due to the real market situation is a system engineering task. This paper developed an agent-based consumer affordability model, trying to observe the durables diffusion with price adjusting according to the evolution of product life cycle (PLC). By creating a large number of heterogeneous consumers in the artificial market, consumer behaviors were dynamically established and predicted. Comparison of sales volume and profit were provided in different scenarios, which could support the business decision-making