We present a choice model based on agent interaction. Interaction is modeled as face-to-face communication that takes place on a regular periodic lattice with decision-makers exchanging information only with immediate neighbors. We investigate the long-run (equilibrium) behavior of the resulting...

This paper is concerned with clustering in demand. We present a discrete choice model of consumption that incorporates habit formation and information exchange among consumers in fixed social networks. We provide an analytical solution to a special case of the model by using technical tools from...

We present a discrete choice model of consumption that incorporates two empirically validated aspects of consumer behaviour: inertia in consumption and interaction among consumers. We specify the interaction structure as a regular lattice with consumers interacting only with immediate...

We present a discrete choice model of consumption that incorporates two empirically validated aspects of consumer behaviour: inertia in consumption and interaction among consumers. We specify the interaction structure as a regular lattice with consumers interacting only with immediate...

This paper is concerned with clustering in demand. We present a discrete choice model of consumption that incorporates habit formation and information exchange among consumers in fixed social networks. We provide an analytical solution to a special case of the model by using technical tools from...

We present a computational model of consumer behavior. Consumers possess expectation-based reference-dependent preferences and are disappointment averse. They interact with each other on static social network. They exchange and update their beliefs about the quality of the product. Individual...

In standard Bertrand model duopolists compete on perfect markets. However, not many markets are perfect. In fact most of the markets have certainstructure, and this structure is known to producers. We describe the marketorganization by modeling consumer-producer networks and demonstrate thatif...