Strategy bifurcation and spatial inhomogeneity in a simple model of competing sellers

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Published 25 July 2007 Europhysics Letters Association
, , Citation L. Mitchell and G. J. Ackland 2007 EPL 79 48003 DOI 10.1209/0295-5075/79/48003

0295-5075/79/4/48003

Abstract

We present a simple one-parameter model for spatially localised evolving agents competing for spatially localised resources. The model considers selling agents able to evolve their pricing strategy in competition for a fixed market. Despite its simplicity, the model displays extraordinarily rich behaviour. In addition to "cheap" sellers pricing to cover their costs, "expensive" sellers spontaneously appear to exploit short-term favourable situations. These expensive sellers "speciate" into discrete price bands. As well as variety in pricing strategy, the "cheap" sellers evolve a strongly correlated spatial structure, which in turn creates niches for their expensive competitors. Thus an entire ecosystem of coexisting, discrete, symmetry-breaking strategies arises.

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10.1209/0295-5075/79/48003