We analyze how strategic asset trading can be used to gain competitive advantage. In the case of electricity markets, companies seek to improve the value of their generating portfolios by acquiring, or selling, power plants. Accordingly, we derive the basic determinants of plant value,...

In this paper we study a local version of the Minority Game where agents are placed on the nodes of a directed graph. Agents care about beingin the minority of the group of agents they are currently linked to and employ myopic best-reply rules to choose their next-period state. We show that, in...

Schelling [1969, 1971a, 1971b, 1978] presented a microeconomic model showing how an integrated city could unravel to a rather segregated city, notwithstanding relatively mild assumptions concerning the individual agents' preferences, i.e., no agent preferring the resulting segregation. We...

A generic property of biological, social and economical networks is their ability to evolve in time, creating or supressing links. We model this situation with an adaptive network of agents playing a Prisoner's Dilemma game. Each agent plays with its local neighbors, collects an aggregate payoff...

Since early nineties, worldwide production and distribution of electricity has been characterized by a progressive liberalization. The state-owned monopolistic production of electricity has been substituted by organized power exchanges (PEs). PEs are markets which aggregate the effective supply...

This paper considers the application of information visualization techniques to an agent-based model of a financial system. The minority game is a simple agent-based model which can be used to simulate the events in a real-world financial market. To aid understanding of this model, we can apply...

Electricity markets are being liberalised and open to private competition in several countries. These liberalized electricity markets are very complex as the interactions between demand and supply are subject to several technicalities arising from the commodity being traded: electricity. One of...

Can advertising lead to a sustainable competitive advantage? To answer this question, we propose a dynamic model of advertising competition where firms repeatedly advertise, compete in the product market, and make entry as well as exit decisions. Within this dynamic framework, we study two...

We develop an explanation of the emergence of local norms, and the associated phenom- enon of geographical variation in behavior. Individuals are assumed to interact locally with neighbors in an environment with a network externality. Although many patterns of behavior are possible, the...

We tend to interact with same people, day after day. Might this affect our behavior? In an abstract fashion, we look at this question. To model this repeated interaction with a small subset of the entire population we place agents on the nodes of a network and have them play a prisoners’...