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Dynamics of brand competition: Effects of unobserved social networks

Sengupta, A and Greetham, DV (2010) 'Dynamics of brand competition: Effects of unobserved social networks.' Journal of Economic Dynamics and Control, 34 (12). 2391 - 2406. ISSN 0165-1889

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Abstract

Brand competition is modelled using an agent based approach in order to examine the long run dynamics of market structure and brand characteristics. A repeated game is designed where myopic firms choose strategies based on beliefs about their rivals and consumers. Consumers are heterogeneous and can observe neighbour behaviour through social networks. Although firms do not observe them, the social networks have a significant impact on the emerging market structure. Presence of networks tends to polarize market share and leads to higher volatility in brands. Yet convergence in brand characteristics usually happens whenever the market reaches a steady state. Scale-free networks accentuate the polarization and volatility more than small world or random networks. Unilateral innovations are less frequent under social networks. © 2010 Elsevier B.V.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Faculty of Social Sciences > Essex Business School > Management Science and Entrepreneurship Group
Depositing User: Jim Jamieson
Date Deposited: 26 Nov 2012 15:24
Last Modified: 05 Feb 2019 12:15
URI: http://repository.essex.ac.uk/id/eprint/4369

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